Insurers eye opportunities in commodity trade finance

Sugar canes piled up

European insurers are investing in commodity trade finance (CTF) as they look for new ways to increase yield and diversify their short-dated investment portfolios.

CTF is an umbrella term for a wide range of assets used to finance the production and transportation of physical materials around the world, secured by the underlying commodities themselves. The current size of the market is $18 trillion.

CX Reinsurance Company, owned by Tawa, an acquirer of insurance firms in run-off, recently made a