Reinsurance hedge fund Tangency Capital has raised an additional $200 million from investors, taking its total assets under management past $600 million, according to a report by Reuters.
The report cites Tangency co-founder Dominik Hagedorn as saying that the fundraising comes on the back of an anticipated sharp rise in premium rates in the property reinsurance market.
While large natural catastrophes such as September’s Hurricane Ian – which may lead to claims totalling up to $50 billion – have hit reinsurers hard, the losses, coupled with a reluctance on the part of reinsurers to increase their exposure, will likely mean that rates will rise sharply to the benefit of reinsurance investors. Hagedorn expects rises of 15%-40% next year, with rates in Florida, which was hit hard by Hurricane Ian, expected to double.
