Investor has a Voice

The investor is at the centre of Sequant Re’s business model.
Based on this key fundamental, the ILS portfolios we put together are fully customised and driven by the investment objectives of our clients.

Sequant Re will only source and write the reinsurance transactions that meet the risk/return mandate of our clients. This approach is very different from traditional funds, where investors have no choice but to subscribe to the funds’ investment policy

Most importantly it allows us to achieve a high degree of transparency with each transaction being disclosed

Each individual Sequant Re ILS portfolio investor receives his own segregated account (also known as an Investor Cell), which is separate and distinct from all other Investor Cells, regardless of its size

The investor provides capital by purchasing an ILS issued by the Investor Cell

The Investor Cell provides the capital to fund the collateral of a number of Cedant Cells (engaged exclusively in reinsurance transactions), which provides diversification and capital protection

The Investor Cell funds only the transactions in which it wishes to participate (based on its risk and return appetite)

The capital along with the premium is returned to the Investor Cell upon the expiry of the reinsurance agreement, net of expenses and losses, if any, paid by the Cedant Cell

At the maturity of each re/insurance transaction, the investor has the option to withdraw the capital along with the premium, or roll it over to a new ILS portfolio

Protection through Diversification

By their very nature, re/insurance transactions are unpredictable. They may be modelled and estimated using historical and other data, but the actual ultimate outcome is uncertain. A diversified ILS portfolio approach is essential to reduce volatility and protect the investor from potential capital loss.

At present, the minimum capital to achieve diversification is considerable, meaning to date this has only been achievable by large institutional investors.

Sequant Re’s innovative platform of risk transformation enables investors of all sizes to access ILS in a diversified manner, thereby levelling the playing field. This is a significant change from what is currently being offered in the ILS market.

When building an ILS portfolio, Sequant Re is looking to source, price, model and underwrite a variety of re/insurance contracts that are diversified by product type, regions, perils and attachment point.

Sequant Re uses sophisticated risk modelling and management techniques to measure the risk in each transaction and only selects transactions we believe will enhance the overall return of the portfolio and mitigate the volatility.

The quality of underwriting and proper diversification, rather than volume of business or market share, is of primary importance to Sequant Re. This approach seeks to protect investors at times when natural disasters do happen.

Capital on Demand

Sequant Re does not sit on investors’ capital. Once we have met with and fully understood our clients’ investment objectives and risk/return appetite we take action, reaching out to reinsurance market participants to source the transactions that will match our clients’ profile.

We have built a significant brokerage network that allows us to access and source a wide range of reinsurance transactions that suits the investment objectives our clients.

We then harness our structuring and risk modelling capabilities to create uncorrelated ILS portfolios that not only meet our clients’ expectations but ideally outperform the market for the same level of risk.

Sophisticated ILS investors can use Sequant Re ILS portfolios to complement their exposure to Cat Bonds