2018-07-10 - Av Henrik Sjöholm

Entrepreneur Lars Irstad invests in cat bond manager

The well-known entrepreneur Lars Irstad, most famous for having founded Programator, purchases 9.9% of the asset manager Entropics Asset Management. Entropics is the first asset manager in Scandinavia specialized in cat bonds (bonds that provide catastrophe insurance).

– Entropics is an interesting company that brings something new to Swedish asset management. Cat bonds are interesting, both as an investment and as a model for providing necessary insurance capacity to globally manage catastrophes. To me, the investment in Entropics is both an opportunity to get an insight into an interesting operation and to help the company to grow, says Lars Irstad.

Entropics CEO Robert Lindblom welcomes the new partner and explains that the expansion of the ownership is strategically important:

– Lars experience from building companies and his wide network strengthens and facilitates our ambition of a sustainable growth in line with demand. Entropics’ ambition is to help close the global insurance gap through cat bonds, and in that effort, I look much forward to use Lars’ knowledge, says Robert Lindblom.

Lars Irstad is primarily known as the founder of the IT consultancy Programator, which was the largest IT company in Sweden in 1992, when it was bought by Cap Gemini. He has started innumerous companies and led a corporate group with 5,000 employees in addition to being on the board of directors in several large Swedish companies. For his contributions to Swedish computer system development and his benevolent efforts for the children of Eastern Europe, he was in 2002 awarded H.M. The King’s Medal 8h size gold medal on Seraphim Order ribbon.

Entropics Asset Management is the first asset manager in Scandinavia specialized in cat bonds. Cat bonds are bonds providing reinsurance against large natural catastrophes. To investors, they offer an asset class that is fundamentally uncorrelated to other asset classes. By transferring risks to the capital market, which is larger than the insurance market by an order of magnitude, they enable insurance in regions with large catastrophe risks. The most important market today is the US, where cat bonds primarily cover earthquake and hurricane risks.

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