pension fund

The City of Zurich Pension Fund has continued to increase its allocation to the insurance-linked securities (ILS) asset class in 2022, with the total reaching over US $700 million by the end of the year.

The Florida Retirement System Pension Plan counted over $912 million of insurance-linked securities (ILS) and related assets under management as of the end of 2022, with the institutional investor continuing to expand the diversification within its insurance and reinsurance investments, thanks to longevity-linked life asset growth.

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.

Netherlands-based pension investor PGGM had increased the size of its insurance-linked securities (ILS) market investments to roughly US $8.5 billion (EUR 8.2bn) as of the middle of the year, with this growth at a time of overall asset devaluation likely the trigger for its more recent downsizing in the asset class.

The Arkansas Teacher Retirement System, a state pension fund that provides retirement solutions to Arkansas education professionals, saw its insurance-linked securities (ILS) allocation shrink further in the last year, while the impacts of hurricane Ian also appear evident in the performance of its ILS portfolio.

Netherlands-based pension investor PGGM has subscribed for another $100 million in shares of its RenaissanceRe managed joint-venture and rated underwriting vehicle Vermeer Reinsurance Ltd. during the third-quarter of 2022.

Netherlands-based pension investor PGGM is set to reduce the overall size of its insurance-linked securities (ILS) market investments, as the groups ILS portfolio has now grown substantially above the target allocation percentage, Artemis has learned.

Many of the world’s largest pension fund investors are actively seeking out diversification opportunities, as they shift portfolios in light of global economic volatility, which could serve to further raise the profile of ILS investments.

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.