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AUM 30.09.2024
Figures are representative and are used here for illustrative purposes only.
The Strategy aims to provide an attractive total return, irrespective of broader economic and financial market conditions, by investing in companies operating within the international insurance sector.
The portfolio is managed as a pool of underwriting capital on behalf of the Strategy’s shareholders. The Strategy seeks to identify 30-35 underwriting specialists that when combined offer a level of diversification that is important in investing in this sector. The Portfolio Manager flexes the portfolio composition to particular classes of business as premium rates, terms and conditions, and loss activity change. The Portfolio Manager seeks to identify and allocate capital to the best in class proven companies, where underwriting is absolutely key. This naturally leads the Portfolio Manager to invest in companies which have more focused underwriting strategies and where management have a meaningful ownership stake and are incentivised on growing book value per share and dividends over time. We believe this is the ultimate driver of share price performance over the long term.
The team do all their own analysis and research with great importance placed on meeting management. Insurance is a promise to pay and therefore an assessment of management integrity is a key part of the investment process.
Nick has worked on the Strategy since 2001 when he joined Hiscox plc. He participated in the management buyout of Hiscox Investment Management in 2007 when the business was renamed HIM Capital Ltd. He has developed a broad knowledge of the insurance sector during this time and from working for the chartered accountants, Mazars Neville Russell, where he specialised in audit and consultancy work for insurance companies and brokers.
Dominic joined Polar Capital as an investment analyst in October 2012 from KPMG and, since March 2022, is a portfolio manager on the Global Insurance Strategy.
Dominic previously worked as part of KPMG's insurance segment which he joined as a graduate trainee. At KPMG, he obtained broad experience working on a range of global insurance companies through roles within M&A and IPO due diligence, audit and markets. Prior to KPMG he worked for a year in corporate finance focusing on natural resource companies.
Risks:
Important Information: This website is provided for the sole use of the intended recipient and is not a financial promotion. The Polar Capital Global Insurance Strategy (the “Strategy”) is a Strategy of Polar Capital Funds plc which is authorised by the Central Bank of Ireland as an Undertaking for Collective Investment in Transferable Securities under the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations 2011 (S.I. 352/2011), as amended. This website does not seek to make any recommendation to buy or sell any particular security (including shares in the Strategy) or to adopt any specific investment strategy. This website does not contain information material to an investor’s decision to invest in the Strategy. Shares in the Strategy are offered only on the basis of information contained in the prospectus, key investor information document (“KIID”), and the latest annual audited accounts. Copies are available free of charge from Polar Capital at the below address or on www.polarcapitalfunds.com. The KIID is available in Danish, Dutch, English, French, German, Italian, Norwegian, Spanish and Swedish. The prospectus is available in English.
Information Subject to Change: The information contained herein is subject to change, without notice, at the discretion of Polar Capital and Polar Capital does not undertake to revise or update this information in any way.
Benchmark: The Strategy is actively managed and uses the MSCI Daily TR World Net Insurance Index as a performance target and to calculate the performance fee. The benchmark has been chosen as it is generally considered to be representative of the investment universe in which the Strategy invests. The performance of the Strategy is likely to differ from the performance of the benchmark as the holdings, weightings and asset allocation will be different. Investors should carefully consider these differences when making comparisons. Further information about the benchmark can be found at http://www.msci.com/. The benchmark is provided by an administrator on the European Securities and Markets Authority (ESMA) register of benchmarks which includes details of all authorised, registered, recognised and endorsed EU and third country benchmark administrators together with their national competent authorities.
Country Specific Disclaimers: When considering an investment into the Strategy, you should make yourself aware of the relevant financial, legal and tax implications. Neither Polar Capital LLP nor Polar Capital Funds plc shall be liable for, and accept no liability for, the use or misuse of this document.
Insurance is an industry that has environmental, social and governance (ESG) factors at its core. It plays a vital service within society, making communities more resilient and playing a key role in the transition to a greener and more sustainable future.
But the evidence suggests that insurance is an underappreciated sector within most ESG and sustainability portfolios. The Polar Capital Global Insurance Strategy aims to capitalize on the long-term secular trends within the insurance industry while prioritising ESG issues, pushing for more action at both a company and industry level over sustainability issues.
We assess each holding on a quarterly basis against our ESG-scoring process. We have identified 20+ key ESG metrics to measure against, which we view as central to the continual success of an underwriting business in building book value per share over time and furthering industry sustainability. ESG scoring is also integrated into our ‘margin of safety’ approach to valuation.
A company’s rating is determined by being measured against these ESG factors, as well as the company’s direction of travel; all of which contribute different weightings towards the final overall rating.
Our process is focused on identifying companies with an underwriting and risk management-driven culture, fostered by management ownership and the right incentive structures.
We look at a company’s strategy, culture and governance through company meetings, deep studies, market and expert insights, site visits and Proxy analysis.
We consider insurance to be one of the few industries that contributes meaningfully to progress against all 17 of the United Nations Sustainable Development Goals.
The construction of our portfolio around ESG factors corresponds to the pursuit of the SDG’s at two different levels.
1. Company level - how the environmental, social and governance factors we consider are directly influencing a holding’s individual contribution to achieving the SDG’s.
2. Sub-sector level - how the different insurance areas we invest in are each are contributing to achieving the SDG’s.
Portfolio ratings are skewed towards governance factors including management capability, ownership, integrity and shareholder alignment.
Our social analysis is informed by site visits, multiple internal and external data sources, management and underwriting meetings and the fund managers’ own extensive industry experience.
Companies must have acted in support of the Paris Agreement objectives. Best-in-class companies are driving industry engagement and moving towards more advanced climate modelling and risk mitigation efforts.
Many companies have only just begun to formally articulate their approaches to sustainability. The majority of holdings are rated Good or Average for their direction of travel and continue to improve.
Assessment of each of our holding’s ESG metrics is part of a wider process of company reviews, which we carry out on a quarterly basis. We run a concentrated portfolio of 30-35 stocks and have a similar number on a watchlist.
This means we usually change just one or two companies a year in the portfolio, which in many cases is as a result of years of careful research, site visits and management meetings. We regularly meet with management teams and insurance industry experts, and we also participate in many hundreds of meetings and site visits each year beyond just our core holdings.
We actively engage and challenge our companies at the highest level. Where companies fall below our governance expectations, we generally seek to encourage improvement over time via sustained engagement. However, should ESG ratings continue to lag the rest of the portfolio and action falls on deaf ears, this would unsurprisingly bring into question our continued investment in the company.
Topics we engage on:
Without exception we also exercise our shareholder rights to vote at companies’ AGM’s on a wider range of ESG issues. We do all our own voting rather than using a central function, which is often the case at other investment groups. We have a robust annual review process in place, which involves reviewing proxies, assessing third-party proxy analysis and research.
Risks:
Important Information: This website is provided for the sole use of the intended recipient and is not a financial promotion. The Polar Capital Global Insurance Strategy (the “Strategy”) is a Strategy of Polar Capital Funds plc which is authorised by the Central Bank of Ireland as an Undertaking for Collective Investment in Transferable Securities under the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations 2011 (S.I. 352/2011), as amended. This website does not seek to make any recommendation to buy or sell any particular security (including shares in the Strategy) or to adopt any specific investment strategy. This website does not contain information material to an investor’s decision to invest in the Strategy. Shares in the Strategy are offered only on the basis of information contained in the prospectus, key investor information document (“KIID”), and the latest annual audited accounts. Copies are available free of charge from Polar Capital at the below address or on www.polarcapitalfunds.com. The KIID is available in Danish, Dutch, English, French, German, Italian, Norwegian, Spanish and Swedish. The prospectus is available in English.
Information Subject to Change: The information contained herein is subject to change, without notice, at the discretion of Polar Capital and Polar Capital does not undertake to revise or update this information in any way.
Country Specific Disclaimers: When considering an investment into the Strategy, you should make yourself aware of the relevant financial, legal and tax implications. Neither Polar Capital LLP nor Polar Capital Funds plc shall be liable for, and accept no liability for, the use or misuse of this document.
| Arch Capital | 9.6 |
| RenaissanceRe Holdings | 8.9 |
| Chubb | 6.4 |
| Marsh McLennan | 6.2 |
| WR Berkley | 5.0 |
| Fairfax Financial Holdings | 4.7 |
| Essent Group | 4.6 |
| Progressive Corp | 4.4 |
| Everest Group | 4.3 |
| Beazley | 4.0 |
| Total |
| Large Cap (>$20bn) | 56.4 | |
| Mid Cap ($5bn - $20bn) | 33.1 | |
| Small Cap (<US$5bn) | 10.4 |
| Commercial | 45.8 | |
| Retail | 19.1 | |
| Reinsurance | 13.6 | |
| Insurance Brokers | 10.6 | |
| Life and Health | 7.7 | |
| Multi-line Insurance | 2.1 | |
| Cash | 1.2 | |
| US | 73.7 | |
| UK | 12.8 | |
| Canada | 8.5 | |
| Asia | 3.0 | |
| Europe | 0.9 | |
| Cash | 1.2 | |
Note: Totals may not sum due to rounding.
It should not be assumed that recommendations made in future will be profitable or will equal performance of the securities in this document. A list of all recommendations made within the immediately preceding 12 months is available upon request.
Risks:
Important Information: This website is provided for the sole use of the intended recipient and is not a financial promotion. The Polar Capital Global Insurance Strategy (the “Strategy”) is a Strategy of Polar Capital Funds plc which is authorised by the Central Bank of Ireland as an Undertaking for Collective Investment in Transferable Securities under the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations 2011 (S.I. 352/2011), as amended. This website does not seek to make any recommendation to buy or sell any particular security (including shares in the Strategy) or to adopt any specific investment strategy. This website does not contain information material to an investor’s decision to invest in the Strategy. Shares in the Strategy are offered only on the basis of information contained in the prospectus, key investor information document (“KIID”), and the latest annual audited accounts. Copies are available free of charge from Polar Capital at the below address or on www.polarcapitalfunds.com. The KIID is available in Danish, Dutch, English, French, German, Italian, Norwegian, Spanish and Swedish. The prospectus is available in English.
Holdings: Portfolio data is “as at” the date indicated and should not be relied upon as a complete or current listing of the holdings (or top holdings) of the Strategy. The holdings may represent only a small percentage of the aggregate portfolio holdings, are subject to change without notice, and may not represent current or future portfolio composition. Information on particular holdings may be withheld if it is in the Strategy’s best interest to do so. A historic complete list of the portfolio holdings may be made available upon request. It should not be assumed that recommendations made in the future will be profitable or will equal performance of the securities. A list of all recommendations made within the immediately preceding 12 months is available upon request. This webpage is designed to provide updated information to institutional investors to enable them to monitor the Strategy. No other persons should rely upon it. The information provided on this webpage should not be considered a recommendation to purchase or sell any particular security.
Information Subject to Change: The information contained herein is subject to change, without notice, at the discretion of Polar Capital and Polar Capital does not undertake to revise or update this information in any way.
Benchmark: The Strategy is actively managed and uses the MSCI Daily TR World Net Insurance Index as a performance target and to calculate the performance fee. The benchmark has been chosen as it is generally considered to be representative of the investment universe in which the Strategy invests. The performance of the Strategy is likely to differ from the performance of the benchmark as the holdings, weightings and asset allocation will be different. Investors should carefully consider these differences when making comparisons. Further information about the benchmark can be found at http://www.msci.com/. The benchmark is provided by an administrator on the European Securities and Markets Authority (ESMA) register of benchmarks which includes details of all authorised, registered, recognised and endorsed EU and third country benchmark administrators together with their national competent authorities.
Allocations: The Strategy allocation percentages set forth in this document are estimates and actual percentages may vary from time-to-time. The types of investments presented herein will not always have the same comparable risks and returns. Please see the private placement memorandum for a description of the investment allocations as well as the risks associated therewith. Please note that the Strategy may elect to invest assets in different investment sectors from those depicted herein, which may entail additional and/or different risks. Performance of the Strategy is dependent on the Investment Manager’s ability to identify and access appropriate investments, and balance assets to maximize return to the Strategy while minimizing its risk. The actual investments in the Strategy may or may not be the same or in the same proportion as those shown herein.
Country Specific Disclaimers: When considering an investment into the Strategy, you should make yourself aware of the relevant financial, legal and tax implications. Neither Polar Capital LLP nor Polar Capital Funds plc shall be liable for, and accept no liability for, the use or misuse of this document.
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