Nephila Climate manages investments in weather-related risks to deliver market-rate returns that are uncorrelated to financial markets while helping to manage and price risks related to the Earth's changing climate. The core exposures in the strategy are US and Australia wind and solar power delivery, as well as drought protection for farmers in India, Brazil and China. The climate team’s tenure, expertise and extensive analytical capabilities in climate markets uniquely position us to capture the global momentum behind sustainability efforts that are creating new demand for climate risk management and a rapidly expanding opportunity set. Today, the largest risk pillars in the strategy are renewable energy and agriculture insurance.
Insurance exists to remove and pool certain risk to enable capital and investment to flow into areas. The climate strategy is focused on sustainability-linked insurance, which can be described as anything enabling the transition to net-zero. Nephila has been a global leader in the business of weather and climate resilience risk transfer and is leaning into the opportunity this economic transition is creating. The climate strategy provides real world solutions to weather and climate-related risks, while operating in an asset class that is uncorrelated to other traditional and alternative investments.