Financial Times FT.com

Catastrophe insurance or extreme risk

By Paul J Davies

Published: July 17 2007 20:51 | Last updated: July 17 2007 20:51

Catastrophe insurers and reinsurers are increasingly turning to the capital markets to help bolster their balance sheets and protect themselves against the kind of drastic losses wrought by hurricane Katrina in 2005.

But even as the nascent market for offloading ex­treme risks direct to investors with racier appetites becomes more established, interesting variants on the theme are emerging.

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