Core Nat Cat Fund

Swiss Re Insurance-Linked Investment Management Ltd. (SRILIM), a specialist insurance-linked securities (ILS) fund management unit of the global reinsurance company, has now surpassed a new milestone of more than $1 billion in assets under management (AUM).

The catastrophe bond market has seen plenty of “well-informed” capital which has helped to drive volumes this year, while rates in the cat bond market are now a little less “frothy” than they had been at times over the last year or so, Swiss Re’s CFO John Dacey said this morning.

Swiss Re’s specialist insurance-linked securities (ILS) and third-party reinsurance capital management division, Alternative Capital Partners (ACP), has reported a 68% increase to its fee income earned for the full-year 2023, reaching $195 million.

The Alternative Capital Partners (ACP) division of global reinsurance giant Swiss Re has seen continued success in fundraising in recent months, with third-party capital under management rising to $3.3 billion over the course of the third-quarter.

Speaking today in Monte Carlo, senior executives from Swiss Re’s reinsurance business unit explained that the firm’s Alternative Capital Partners (ACP) unit is an area where “consistency and continuity” are key, while the firm sees “zero conflicts” between its ACP investors and its equity holders.

Philipp Rüede, Head of Swiss Re’s Alternative Capital Partners (ACP) unit told us in an interview that the outlook for use of alternative capital and for insurance-linked securities (ILS) as an asset class has “significantly improved”, with expected returns now doubled or tripled in some ILS strategies.

Higher assets under management and improved returns in the insurance-linked securities (ILS) funds and sidecar structures managed by Swiss Re’s Alternative Capital Partners (ACP) division have driven a significant increase in fee income and commissions earned by the reinsurer in the first-half of 2023.

In order for capital to flow more meaningfully back into insurance-linked securities (ILS), John Dacey, the CFO of global reinsurance firm Swiss Re, said that the industry needs to better address investor concerns over climate change impacts to nat cat risk.

Global reinsurance company Swiss Re grew its collateralized reinsurance sidecar and insurance-linked securities (ILS) fund assets under management by 29% in 2022, lifting the third-party investor total to $2.9 billion.

Global reinsurance firm Swiss Re has continued to expand its activities in insurance-linked securities (ILS) over the last year and Philipp Rüede, Head of Swiss Re’s Alternative Capital Partners (ACP) unit, explained to us that with now multiple access points available to investors, the company hopes to grow all its ILS strategies.