Katarsis Capital Advisors, the advisory company of Eskatos, has licensed risk modeling software provider AIR Worldwide’s Catrader, an application for analyzing catastrophe reinsurance and insurance-linked securities.
Katarsis will use Catrader to advise Eskatos Capital Management Sarl to manage its portfolio of ILS and develop optimal hedging strategies.
The use of diverse set of structures in insurance-linked securities has driven the demand for sophisticated analysis tools. Using Catrader, investors can manage a portfolio of catastrophe bonds, Industry Loss Warranties (ILWs) and reinsurance contracts using a single analysis tool. Catrader can be used to evaluate portfolios of reinsurance contracts, catastrophe bonds and other catastrophe-related instruments with a range of trigger types, including indemnity, index and notional portfolio-based triggers, said AIR Worldwide.
Otello Padovani, founding partner and CEO at Katarsis, said: AIR’s Catrader is the right choice for katarsis because it uses the most scientifically advanced Catastrophe models available. AIR’s solution combines unsurpassed service and timely catastrophe bond remodeling capabilities to provide the most accurate information available on current issuances. We will leverage Catrader to advise Eskatos Capital Management about the optimal mix of insurance-linked assets and the risk/return profile for Eskatos’ portfolio of investments.
Yorn Tatge, managing director for Munich and Germany at AIR Worldwide, said: In today’s turbulent market conditions, investors like Eskatos are increasingly turning to insurance-linked securities, which are not correlated with the traditional capital markets, to maximize their returns while minimizing their risk. Catrader is the industry standard application for analyzing insurance-linked securities and will help investment firms like Eskatos Capital Management make better informed investment decisions on behalf of their clients.