Global reinsurance firm Swiss Re, through its specialist insurance-linked securities (ILS) fund management unit Swiss Re Insurance-Linked Investment Management Ltd (SRILIM), has secured a US $250 million investment into its 1863 ILS fund platform from the largest Swedish private pension Alecta.
The reinsurer said this is a “substantial investment” from the Swedish pension fund Alecta, which manages assets of approximately 2.6 million customers.
The investment means that pension fund Alecta will be able to participate in Swiss Re’s natural catastrophe reinsurance underwriting business, benefiting from significant diversification potential for its portfolio.,
In addition, Alecta will benefit from the partnership by leveraging Swiss Re’s risk knowledge and reinsurance underwriting expertise.
Adding to this, Swiss Re said that the allocation through its flagship 1863 ILS fund platform, provides the Alecta pension with a capital efficient fund format to access reinsurance linked returns through.
Martin Bisping, CEO of SRILIM, commented, “We are very excited to have Alecta as a strategic partner. This marks a significant milestone, particularly in terms of asset raising, in the still young history of our 1863 fund platform, which achieved strong investment performance since its launch a year ago. I am confident that we will accelerate this positive momentum, as we continue to broaden our partnerships with alternative capital investors, such as Alecta.”
Tony Persson, Head of Fixed Income and Strategy at Alecta, added, “Our primary focus is on generating attractive long-term returns for our customers. We manage our assets in an efficient and sustainable manner, working with few select partners where we see relevant investment opportunities. We are convinced that insurance-linked securities can generate high-quality and uncorrelated returns and are pleased to partner with Swiss Re to benefit from its extensive expertise in this domain. We look forward to a long-lasting collaboration.”
Swiss Re established the 1863 ILS fund platform in November 2020 and has been building out partnerships with major global institutional investors ever since.