Investment Objective

The investment objective of the Company is to generate attractive returns from a sustainable annual dividend yield and longer-term capital growth by investing substantially all of its assets in the Master Fund.

Target Returns

The Company will target an annualised dividend yield of LIBOR plus 6 per cent. per annum on the Issue Price of the Ordinary Shares. The Company will also target a net return to Shareholders (comprised of dividends and other distributions to Shareholders together with increases in the Company's Net Asset Value) of LIBOR plus 10 per cent. per annum to be achieved over the longer term.1

Investment Policy

The Company will seek to achieve its investment objective by investing substantially all of its assets in the Master Fund.

The Master Fund will invest in a diversified portfolio of fully collateralized reinsurance-linked contracts and other investments carrying exposures to insured catastrophe event risks. The Master Fund will predominantly invest in fully collateralised reinsurance-linked contracts through investing in preference shares issued by the Reinsurer.

The Master Fund may also invest directly in other reinsurance-linked investments such as Industry Loss Warranties (ILWs), Cat Bonds and other Insurance-Linked Securities directly.

1.       These are targets only and not profit forecasts. There can be no assurance that these targets will be met or that the Company will make any returns or distributions whatsoever or that investors will recover all or any of their investment. Prospective investors should decide for themselves whether or not the target returns and distributions are reasonable or achievable in deciding whether to invest in the Company.