The RISX index uses the ICMR’s transparent weighting algorithm based on reported written premiums, which offers a more appropriate combination of underlying risks than a traditional market capitalization weighting, and also ensures sufficient liquidity of the components. underlyings of the index. As a result, the index’s aggregate weighted underwriting return profile mimicked that of Lloyd’s.
Quentin Moore, co-founder of ICMR, said the team is excited to launch the RISX index, given the difficulty investors traditionally face in benchmarking specialty insurance investments.
“We are delighted to be working with Moorgate Benchmarks as a regulated benchmark administrator and index partner,” he said. “Their experience and regulated status allow all stakeholders to have full confidence in both the quality of the calculation and in the governance of the index, as well as in the development of investment products.”
Meanwhile, Markus Gesmann, co-founder of ICMR, noted that the index is an industry first and opens the potential for further research into more liquid investments linked to Lloyd’s, as well as providing metrics alternatives to measure and compare performance.
Gesmann added: “I would like to thank the team at Moorgate Benchmarks, who were instrumental in bringing our idea to market.”
Commenting on the news, Gareth Parker, President and Chief Index Officer of Moorgate Benchmarks, said: “We are delighted to be the administrator of the innovative ICMR index. The ICMR’s expertise in the insurance markets and our contribution to the design of indices has resulted in an extremely interesting, important and negotiable indicator of the returns of specialized (re) insurance activities.
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.