“When we first launched we were considered exotic beta, whereas now we are focused on alpha generation”
Nephila’s objective is to provide investors with superior returns in an asset class which is uncorrelated with the traditional financial market. We augment the attractive natural characteristics of a non-correlated positive expected return (“exotic beta”) with a comprehensive analytical overlay, market relationships and experience to create additional expected return (“alpha”). To that end, our philosophy focuses on the importance of portfolio construction – both at a macro level (allocation to this asset class within an institutional investment portfolio) and at an operational level (careful and systematic selection of risks to arrive at an optimal portfolio given investor preferences).
We consider ourselves pioneers in our industry and credit this to our “follow the logic” philosophy. Our approach to decision making is to start, as much as possible, with a neutral viewpoint and to apply rigorous logic to all available facts, in order to arrive at a conclusion. Applying this discipline of “following the logic” has allowed us to anticipate and to benefit from many of the changes that have occurred in the reinsurance industry since 2000. As a company, and as individuals, we have been actively involved in this space since the first transactions in the mid-1990s. Our business model is to bridge a gap between two capital markets, creating attractive assets for institutional investors by offering best-credit-quality coverage to buyers of reinsurance and weather protection.