As evidenced from the chart below, this alternative capital solution demonstrates an extreme outperformance with an incredible consistency compared to the corporate bond market. How is this possible?

It can be explained by two facts:

1. The niche Life Insurance Linked Securities (Life ILS) market has an elevated average rate of return generally exceeding 10% annualized.

2. High quality management and structuring provide additional value.

Life ILS are a bona fide alternative fixed income asset class, given features such as long-dated cashflows and low correlation with other asset classes. Due to increasing demand in the life insurance industry, it is quite reasonable to expect Life ILS will develop into a more mature asset class over the coming years.


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