Private equity firms have for many years been significant investors in insurance brokers, and in property reinsurance vehicles. In recent years, hedge funds, private equity firms and other alternative investors have expanded their insurance investments to include life insurance companies and many different types of reinsurers, according to an article published in Best's Review. Attorney Mark Goodman, a partner in the firm's Insurance/Reinsurance Practice Group, was interviewed for the story, titled "The New Capital," which appeared in the February 2014 issue. According to Mark, "On the property/casualty side, often what [hedge fund investors] are looking for is one of two things: non-correlated risks or risks that are not correlated to the economy or the stock market. And the other thing is they’re willing to take big risks, because that’s what they do. They’re hedge funds; they take big risks and they get big returns.”
A PDF of the full article is attached. Reprinted with permission from Best's Review Magazine.
