Swiss Re Insurance-Linked Fund Management

Original Risk: A Society for Change Agents

Investment managers and advisers load up on Blue Capital


Investment managers and registered investment advisers continue to be attracted to insurance linked investments in reinsurance and catastrophe risk, with two more examples of this in recent statements of ownership in Blue Capital reinsurance vehicles.

Blue Capital Management, the third-party capital and reinsurance-linked investment management arm of Bermuda based reinsurer Montpelier Re, operates a number of insurance and reinsurance linked investment opportunities, including its London-listed Blue Capital Global Reinsurance Fund and New York listed collateralized reinsurance firm Blue Capital Reinsurance Holdings Ltd. (BCRH).

These types of investment opportunity have been proving popular with large asset managers, who often take allocations to then disperse within their own multi-asset fund strategies. Some registered investment advisers are also increasingly allocating clients capital to reinsurance linked investment strategies as the knowledge, understanding and profile of ILS and insurance linked investments grows.

Back in January Artemis reported that investment manager Baillie Gifford had taken a 7% share in Blue Capital Reinsurance Holdings, the latest large allocation to a reinsurance fund or ILS that the manager had made.

Another large UK-based investment manager, M&G Investment Management Limited, now holds a large stake in the Blue Capital Global Reinsurance Fund, according to a statement of ownership. M&G Investment Management holds 25.68m shares in the catastrophe reinsurance and retrocession fund, giving it 14.89% of the available shares at the time of reporting.

Meanwhile a New York based registered investment advisor, Donald Smith & Co., Inc., which specialises in managing equity investments for tax-exempt and taxable funds, and high net worth individuals, has taken a large stake in the equity of collateralized reinsurer Blue Capital Reinsurance Holdings.

Donald Smith & Co. held 712,396 of the available shares in Blue Capital Re at the time of reporting. That equates to an 8.14% stake in the reinsurer, a sizeable holding.

These examples of investment managers and advisers, who often work with retail investors as well as institutional, continue to access the ILS and reinsurance linked investments space bringing additional capital to the sector. This trend can only continue as more investment opportunities launch and education about the ILS sector expands.

Register today for ILS Asia 2023, our next insurance-linked securities (ILS) market conference. Held in Singapore, July 13th, 2023.

Artemis ILS Asia 2023 - Insurance-linked securities conference in Singapore

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