Index created to provide benchmark of the specialty (re)insurance industry

Insurance Capital Markets Research (ICMR), the specialist analytics and consulting firm founded by two former heads of analysis and research at Lloyd's, has launched an equity index, the ICMR (Re)Insurance Specialty Equity Index (ticker symbols 'RISX', 'RISXNTR') and the appointment of Moorgate Benchmarks, the index company driving change, as its calculator and administrator.

The innovative RISX Index is the first of its kind, focusing exclusively on the publicly listed global insurance and reinsurance companies that control syndicates at Lloyd’s, the oldest continuously trading insurance market in the world.

The RISX Index aims to provide an equity benchmark better suited to specialty (re)insurance underwriting than other, more generalist insurance equity indices. It will also provide investors with an equity proxy to compare against the reported pro-forma aggregate results of Lloyd’s. The index seeks to provide a truly global benchmark of the specialty (re)insurance industry and will enable the creation of investment products targeting the specialty (re)insurance arena.

The RISX Index uses ICMR’s transparent weighting algorithm based on reported premiums written, which gives a more appropriate mix of underlying risk than a traditional market capitalisation weighting, while ensuring sufficient liquidity in the underlying index components. As a result, the aggregated weighted underwriting return profile of the index has mimicked that of Lloyd’s.

Mr Quentin Moore, co-founder of ICMR, said investors have traditionally encountered difficulty in benchmarking specialty insurance risk investment. He said, “We are delighted to be working with Moorgate Benchmarks as our regulated benchmark administrator and index partner. Their experience and regulated status allow all stakeholders to have full confidence in both the calculation quality and the governance of the index, as well as to develop investment products.”

Mr Markus Gesmann, co-founder of ICMR, added, “This index is a first in our industry, opening up the potential for new research in relation to more liquid Lloyd’s-related investments, as well as providing alternative metrics to measure and benchmark performance.”

Neither ICMR nor Moorgate Benchmarks nor RISX nor RISXNTR are associated or affiliated in any way with Lloyd's of London or the Society of Lloyd's or the Corporation of Lloyd's.

Source: Asia insurance review