
SAN FRANCISCO (MarketWatch) — Under increasing pressure to extend a string of huge returns for their super-wealthy clients, several top hedge funds are making forays into what may seem an unlikely new business for high-flying investors: reinsurance.
And their entry into a market once dominated by a few old-guard insurance specialists has raised hackles among the industry’s leading players. Established reinsurance companies fear that hedge funds, which are virtually swimming in cash, command an uncommon ability to drive down prices, in turn eroding their premiums.