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The senior leadership of global reinsurance company Swiss Re is bullish that insurance-linked securities (ILS) investor appetite will recover after a recent lull caused by losses and uncertainty, they explained at the firm’s investor day yesterday.

Global reinsurance company Swiss Re gave some insights into its growing Alternative Capital Partners business this morning, explaining that the annual fee income earned from alternative reinsurance capital activities and insurance-linked securities (ILS) management is on track for US $100 million.

As Swiss Re grows its natural catastrophe exposures, which CEO Christian Mumenthaler today called “a core competence”, the company is benefiting from its expanding use of alternative reinsurance capital and insurance-linked securities (ILS), CFO John Dacey explained.

Swiss Re continued to expand its alternative reinsurance capital assets under management across the range of insurance-linked securities (ILS) structures it manages for 2022, with notable successes in growing sidecar commitments for its PGGM-backed vehicle and its multi-investor Sector Re sidecar.

Global reinsurance firm Swiss Re developed its 1863 insurance-linked securities (ILS) fund platform to be “investor friendly” and has attempted to address some of the “structural inefficiencies” often seen in ILS products, according to Martin Bisping, CEO of the reinsurers’ Swiss Re Insurance-Linked Investment Management Ltd (SRILIM) unit.

Alecta, which is the largest pension fund in Sweden, intends to take a long-term view on the insurance-linked securities (ILS) sector and according to a report is planning to make further investments into reinsurance related risks through ILS strategies.

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.

As third-party or alternative capital managed continues to grow for global reinsurance firm Swiss Re, the company is keen to stress that this doesn’t mean any changes to its underwriting approach and standards, Philipp Rüede told us.

Global reinsurance firm Swiss Re has continued to add to its growing haul of alternative capital, as its insurance-linked securities (ILS) management operations expand, and now the company targets continued growth, aiming to become the “best integrated capital franchise”, according to Philipp Rüede, Head of Swiss Re’s Alternative Capital Partners (ACP) unit.

While capital has become more abundant, fungible and cheaper as a result over the last decade, it remains important as the “entry ticket” to the world of insurance and reinsurance, but it is no longer the main value proposition, Swiss Re CEO Christian Mumenthaler said today.