Insurance Linked Securities
The following actual client case study is an example of MUFG’s ability to create bespoke solutions for any type of unusual or illiquid strategies. Regardless of asset class, structure, geography or valuation methodology, we have the talent and technology to work with the manager and auditors to deliver robust and transparent reporting to managers, investors, auditors and other interested parties.
MUFG has been servicing insurance funds for over ten years. From virtually the infancy of the strategy through its growth, maturity and institutionalisation, MUFG’s dedicated experts and technology has provided leading edge solutions to the unique challenges such strategies present through both steady state and major loss events.
When your portfolio is comprised of specialist securities for which there is no public market, proper valuation procedures and independent checks become hugely important to investors.
MUFG’s technical experts worked with this client’s trading team to establish a standard valuation policy based on available information incorporating years of historical risk and event data. Our procedures in independently implementing the valuation model and then reconciling to the clients valuations provides comfort to investors, and has stood the test of time of 10 years of in depth investor due diligence.
When a catastrophe loss event occurs, data around the event develops over time so the need for a method to keep the fund open for trading whilst treating all investors fairly is key. Having over ten years of experience in insurance linked strategies and having been through a number of natural catastrophe events, MUFG has extensive and practical experience in dealing with valuation and investor reporting around such events.
MUFG has also implemented system solutions to allow for detailed performance analysis by the manager. By tagging deal transactions with various attributes set by the client the manager is able to analyse performance of each of its portfolios at a detailed level and from several different perspectives.