Australian Pensions Boost Investment in Insurance for Disasters
- Colonial First State is looking at reinsurance investments
- Insignia’s pensions business returned 16% with reinsurance
Issuance of catastrophe bonds hit a record high in June, as the market braced for a rough hurricane season with the potential to do substantial damage.
Photographer: David Gray/BloombergThis article is for subscribers only.
The risks from the growing number of natural disasters offer Australia’s largest pension funds a chance to boost returns.
Colonial First State, one of the nation’s biggest pension and wealth managers, is looking to add natural catastrophe reinsurance to its A$151 billion portfolio ($99.5 billion), while rival Insignia Financial Ltd. posted returns of 16% in the category last financial year.