Swedish pension fund Alecta has allocated US $200 million to invest in reinsurance firm SCOR’s new sidecar structure, a Atlas Gotland Worldwide Catastrophe Sidecar which is part of newly formed SPI Atlas Re Limited.
As we explained yesterday, Alecta has also allocated to an insurance-linked securities (ILS) investment fund managed by reinsurance firm Swiss Re, putting some money into its 1863 ILS fund strategy.
Now, it’s become clear that this Swedish pension fund is allocating to the ILS asset class in a big way for 2022, as SCOR announced its reinsurance sidecar investment from Alecta today as well.
SCOR said that it has secured a $200 million investment from Swedish pension fund Alecta into its collateralised sidecar platform.
The $200 million has been allocated to a new segregated account named the Atlas Gotland Worldwide Catastrophe Sidecar, which is part of a newly created special purpose reinsurer, Atlas Re Limited, that is domiciled in Bermuda.
Alecta expects to benefit from the performance of SCOR Global P&C’s diversified portfolio of global property catastrophe reinsurance, through this multi-year sidecar investment agreement.
Jean-Paul Conoscente, CEO of SCOR Global P&C, commented, “We are very pleased to strengthen our relationship with Alecta through this long-term partnership and to further expand SCOR’s strategy of giving access to its underwriting franchise and diversified portfolio to institutional investors through third-party capital transactions. This is another important milestone in the development of SCOR’s third-party capital strategy, with an important partnership with a leading pension fund.”
Tony Persson, Head of Fixed Income and Strategy at Alecta, added, “Our focus is on generating solid long-term returns for our customers being 2.6 million people and 35,000 businesses across Sweden. We manage our assets in a cost efficient and sustainable manner, working with few select external partners where we see relevant investment opportunities.
“We are convinced that insurance-linked securities can generate high-quality and uncorrelated returns benefiting our overall portfolio and are pleased to partner with SCOR given their expertise in this domain. We look forward to a long-lasting collaboration.”
Alecta is making its ambitions in insurance-linked securities (ILS) clear, by partnering with two significant reinsurance firms that can help the pension fund access reinsurance-linked returns from across the catastrophe risk spectrum.
For details of many reinsurance sidecar investments and transactions over the history of the ILS market, view our comprehensive list of collateralized reinsurance sidecars transactions.