This is a slideshare about Nephilia Capital - a Natural Disaster Investment Firm. This presentations shares the companies history, goals, about, recent press (including Oregon and KKR's investments) and more.

1. Nephila Capital
Natural Disaster Firm

2. Nephila Capital’s Background
• Nephila Capital Limited was founded in 1997
in London, England.
• It is a part of Willis Limited, which at the time
was the world’s 3rd largest reinsurance broker.
• In 1999 they relocated to Bermuda. The
reasoning behind this was to establish a local
presence.

3. About
• Nephila Capital is an owned subsidiary of
Nephila Holdings Limited and is a Bermuda
domiciled company.
• What Nephila does is act as an investment
advisor for client account.
• In 2010 Nephila Holdings established Nephila
Advisors LLC in the US. This was done to
support Nephila in investor relations and
business development.

4. Nephila in the Press – Oregon Invests
$100 Million
• An investment council in Tigard, Oregon
pledged $100 million to Nephila funds in
December of 2011.
• This money is being used for the Juniper fund,
which is one of the higher risk contracts, and
the Palmetto fund, which is one of the lower
risk funds.

5. KKR Buys a 24.9% Stake in Nephila
• On January 24, 2013, KKR announced that
they have taken a 24.9% stake in Nephila
Capital.
• The deal was closed the 23rd, but no further
details have been released to the press.

6. Their Investment Philosophy &
Objectives
• Nephila Capital’s philosophy is, “based on the premise that institutional
investors are attracted to the non-correlated, relatively high-yielding
returns offered by insurance linked instruments.”
• 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).”
Source

7. Research
• Risk assessment research, “focuses on issues such as the parameterization of natural catastrophes
and exposure management. We conduct ongoing research on subjects relating to our industry and
portfolios, which we make available to investors through our secure website. Our broad portfolio
team has expertise which spans both the quantitative side of the risk modeling as well as the
reinsurance underwriting component. In addition to our internal resources, Nephila maintains
relationships with various third party experts (primarily leading academics in the fields of finance,
oceanography, weather or he study of hurricanes) who conduct additional research into specific
problems on our behalf.”
• Market dynamics research, “focuses on the various pressures affecting the participants in the
traditional reinsurance, catastrophe bond and Industry Loss Warranty (ILW) markets. As a
consequence of our position as the leading manager in our space, as well as our well-established
position in the reinsurance market, we have access to a wealth of information that is not easily
accessible to new market entrants or more casual market participants. This information is
harnessed internally and used to develop strategies and identify trends in the various markets.”
• Portfolio construction research, “has focused on relative value among catastrophe market sectors
(e.g. traditional reinsurance, retrocession, ILWs, or cat bonds), with an emphasis on matching
portfolio risk return parameters with investor appetite and expectations. We have conducted
extensive research into quantifying investor preferences and can provide custom solutions to our
investors in the context of their overall investment profile.”
Source