PIMCO adds almost $26m more to its ILS Series SPC fund vehicle

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Giant asset manager PIMCO has raised and deployed more funds into its Cayman Islands based ILS Series SPC fund, taking total insurance-linked assets within one segregated fund account to $51.8 million and overall assets in the vehicle to just over $150 million.

PIMCO building logoPIMCO (Pacific Investment Management Company LLC), the investment management arm of insurance giant Allianz S.E. that commands around $1.76 trillion of assets, launched the PIMCO ILS Business in January 2019, appointing Rick Pagnani to lead the new insurance-linked securities (ILS) operation.

The new ILS unit of PIMCO has been steadily building out a team and platform and was ready to begin more active underwriting operations as of the start of 2020.

As well as the all-important underwriting vehicle, PIMCO ILS’ Class 3B reinsurance vehicle Newport Re Ltd., the manager has been establishing insurance-linked securities (ILS) fund structures to suit its investors needs.

Among those was an ILS fund structure in the Cayman Islands that the PIMCO ILS team set up last year, registered as the PIMCO ILS Series SPC which has been structured as a mutual fund under the domiciles laws.

PIMCO first raised capital for the PIMCO ILS Series SPC fund vehicle around the mid-year 2019 renewals and allocated $26 million to a segregated account portfolio, named PIMCO ILS Fund SP I, within the funds structure.

Then, as we were first to report earlier this month, a second segregated account portfolio was established, named the PIMCO ILS Fund SP II, to which an offering amount of $98.901 million was attributed, representing a fresh capital raise and deployment using this vehicle in time for the January reinsurance renewals.

Now another addition of capital has come to light, with PIMCO now taking the first PIMCO ILS Fund SP I segregated account portfolio to $51.8 million, so an addition of $25.8 million of fresh capital deployed to the structure.

In the scope of PIMCO’s asset management activities these are relatively small amounts of funds and it’s likely the PIMCO ILS team has more capital in other private structures we aren’t privy to.

But the new additions to this Cayman ILS fund structure show that the PIMCO ILS team is actively managing capital for its investors and risk for ceding companies, which has likely been underwritten by the manager’s Newport Re reinsurance vehicle.

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