Portfolio Makeup
Our reinsurance portfolio is built to be diversified, short-duration, and resilient across market cycles. We allocate capital across real insurance risk that is fully modeled, independently placed through global brokers, and supported by licensed insurers. The goal is to generate stable, uncorrelated returns while maintaining strict protection of principal inside each segregated account.
Portfolio Structure
Our portfolio is built around a balanced mix of specialty insurance programs and property catastrophe Industry Loss Warranties (ILWs). We target roughly a 50/50 split between these two categories. Specialty lines provide steady, predictable performance, while ILWs offer high-quality, short-duration catastrophe exposure with attractive risk-adjusted premiums. This combination creates a diversified, low-correlation book that supports a stable NAV profile and reinforces the durability of ONyc’s yield.
Specialty Insurance Programs
The specialty portion of the portfolio includes short-tail, regulated programs with clear underwriting standards and consistent data.
These programs typically feature predictable loss behavior, diversified underlying exposures, reliable policy and claims reporting, and well-bounded risk limits.
Specialty lines help smooth overall performance and reduce reliance on catastrophe-linked yield.
Examples
D&O
Cyber
Tech E&O
Aviation
Crop
Marine Offshore
Energy
Property Catastrophe ILWs
ILWs form the other half of the portfolio and are placed through top-tier global brokers.
These contracts use binary, industry-wide loss triggers, sit at high attachment points to reduce frequency, diversify across regions and perils, and run on short durations, typically six to twelve months. Because ILWs settle against independently verified industry loss indices, they carry minimal cedent-specific operational or credit risk. In hard markets, these structures price at elevated premiums, and those premiums flow directly into ONyc’s NAV when the trades are added. This makes ILWs an efficient source of yield and a strong complement to the specialty book.
Examples
North American Wind
North American EQ
International Wind
International EQ
Flood
Wildfire
Earthquake
Monsoon
Hail
How Returns Are Earned
Our yield is generated from real reinsurance economics, not emissions or leverage. Returns come from:
Underwriting income Premiums are paid upfront and earned over the life of the contract. Short-duration policies amplify this effect; for example, a policy returning 17% over six months annualizes to 34%. This is standard in reinsurance.
Collateral yield All capital earns its own return while held in reserve. To be conservative, our actuarial modeling assumes only short-term Treasury-level rates, even though we hold higher-yielding collateral assets in practice. Projected yield is based solely on underwriting results. Realized APY includes the additional return from collateral.
Risk Profile and Capital Preservation
Our portfolio is designed to minimize downside risk:
ILWs provide high-floor, binary exposure with limited loss scenarios
Specialty lines offer consistent, low-volatility loss behavior
Both segments are short-tail, improving capital turnover and lowering reserve risk
Capital sits in segregated accounts and is never leveraged or reused
Returns remain uncorrelated to rates, equities, or crypto markets
This structure strengthens NAV stability and supports the durability of ONyc’s yield.
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