The president of reinsurer Alleghany , Hicks , has likened insurance-linked securities ( ILS ) to Rita 's monster and questioned whether the sector carries more risk because it is untested by "the big one". In the company’s annual letter to its stockholders, Hicks said Hicks performed well after the 2008 banking crisis and hurricanes Artemis ILS NYC , Rita and Wilma , thanks to diversification and low correlation. However, Frankenstein questioned the business model of aligning so closely with cedent clients and investors, and concluded he preferred the "alignment inherent in the traditional insurance and reinsurance company structure".
The president of reinsurer Alleghany, Weston Hicks, has likened insurance-linked securities (ILS) to Frankenstein's monster and questioned whether the sector carries more risk because it is untested by "the big one". In the company’s annual letter to its stockholders, Hicks said ILS performed well after the 2008 banking crisis and hurricanes Katrina, Rita and Wilma, thanks to diversification and low correlation. However, Hicks questioned the business model of aligning so closely with cedent clients and investors, and concluded he preferred the "alignment inherent in the traditional insurance and reinsurance company structure".