Pillar Capital’s ILS assets grow 39% in 2020, reaching $2.4bn

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Pillar Capital Management Limited, a Bermuda headquartered specialist collateralized reinsurance and insurance-linked securities (ILS) investment manager, has continued to have fund raising success through 2020, lifting its ILS assets managed by 39% to reach $2.4 billion as of the start of 2021.

pillar-capital-managementPillar Capital Management Limited, a Bermuda headquartered specialist collateralized reinsurance and insurance-linked securities (ILS) investment manager, has continued to have fund raising success through 2020, lifting its ILS assets managed by 39% to reach $2.4 billion as of the start of 2021.

Pillar Capital’s investment team has a track-record dating back to 2008 and participates in all areas of the (re)insurance market, being traditional reinsurance, retrocession, industry loss warranties (ILWs), catastrophe bonds and a growing participation in the MGA/Per Risk area.

Transatlantic Holdings, Inc., the Alleghany owned insurance and reinsurance entity has been an investor in the entity since 2008. The ILS investment manager is one of the few independently run managers, as Trans Re has a passive role.

Pillar is one of the ILS fund managers that has experienced strong growth through the more challenging reinsurance markets of 2017-2021.

As of the start of 2020, Pillar Capital had reported its ILS and collateralized reinsurance assets under management reaching more than $1.73 billion.

As of January 1st 2021, that figure has increased by some 39%, to reach $2.4 billion of ILS and reinsurance assets under management.

Stephen Velotti, Chief Executive Officer and Chief Investment Officer of Pillar Capital noted the robustness of insurance-linked securities as an asset class through 2020, despite the clear challenges faced.

“Although many investors have exited or reduced their allocation to ILS over the past couple of years, overall interest is still strong,” Velotti explained.

Adding that, “Pillar continues to expand and build out our infrastructure. Investing, Finance and Operations have all expanded with expanded systems and increased head count.”

With the key renewal season of the year just over, Velotti said that while market conditions had been mixed, the investments his team have made leave Pillar Capital well positioned.

“January 2021 continued to see margin expansion in multiple areas. Retro may have come in at the low end of expectations, but still expanded including improvements to Terms and Conditions,” he told us.

“Other areas such as traditional reinsurance, saw margin expansion come in at expectation. This would be the fourth year in a row for margin expansion, leaving Pillar’s portfolios well placed going into 2021.”

Pillar Capital Management features in our Insurance-Linked Securities Investment Managers & Funds Directory, which details all of the major managers of ILS and reinsurance linked assets.

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