Sector Re

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.

Global reinsurance firm Swiss Re has increased the alternative reinsurance capital assets under management in a range of insurance-linked securities (ILS) structures to $2.8 billion, with the recently launched 1863 Fund one area of the business to benefit.

Global reinsurance firm Swiss Re continues to demonstrate its growing commitment to third-party sources of capital and insurance-linked securities (ILS), announcing this morning that it is launching a dedicated ILS fund, the Core Nat Cat Fund, so investors can participate in its natural catastrophe underwriting business.

During its annual investor day this morning, Swiss Re’s CFO John Dacey explained just how important the use of alternative capital and relationships with insurance-linked securities (ILS) investors has become for the company, explaining that it aims to build on its use of ILS capacity and find ways to make the capital more permanent.

Global reinsurance firm Swiss Re looks set to target profitable growth for its property and casualty (P&C) reinsurance business, aiming to underwrite more business in the hardening market at a reduced combined ratio.

The alignment inherent in the collateralised reinsurance sidecar vehicles that Swiss Re operates has helped the company to attract fresh ILS capital even during difficult times, the firms CEO Christian Mumenthaler told us.

Swiss Re wants to become the “leading franchise for Nat Cat risks” and alternative reinsurance capital is set to be a key driver of this ambition at the major global re/insurer, according to Philipp Rüede, Head of the firms Alternative Capital Partners unit.

Global reinsurance firm Swiss Re expects that while it seems that some losses from the Covid-19 pandemic could fall to its quota share sidecar investors, the amount won’t be significant.