Aussie pensions bank on disaster insurance


Natural event: Visitors at the Magic Kingdom at Walt Disney World brave the elements from Hurricane Debby in Central Florida. Cat bond sales were 38% higher this year through to May than over the same five-month period in 2023. — AP

SYDNEY: The risks from the growing number of natural disasters offer Australia’s largest pension funds a chance to boost returns.

Colonial First State, one of the nation’s biggest pension and wealth managers, is looking to add natural catastrophe reinsurance to its A$151bil portfolio (US$99.5bil), while rival Insignia Financial Ltd posted returns of 16% in the category last financial year.

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