Swiss Re enters into $500m Viaduct Re sidecar deal with PGGM

Swiss Re has closed a second private sidecar transaction with the Dutch pension fund manager PGGM, wherein PGGM made an overall investment of over $500 million in Zurich-based reinsurer's sidecar vehicle Viaduct Re.

The transaction increases PGGM’s investment into an initial sidecar established in July 2019, which focuses on US property reinsurance risks. Viaduct Re is a special purpose insurer and segregated accounts company.

The deal will enable PGGM to access a portion of Swiss Re’s core natural catastrophe property treaty reinsurance portfolio through Viaduct Re.

The Zurich-based reinsurer described the deal as a "milestone for Swiss Re’s alternative capital partners", which was formed in 2019 to manage Swiss Re’s third-party capital activities.

Philipp Rüede, head alternative capital partners at Swiss Re, said: “We are very excited to strengthen our relationship with one of the leading and most sophisticated investors in the ILS market. Swiss Re has built a market-leading position as the home for natural catastrophe risks based on our experience in underwriting, our proprietary R&D and our strong client franchise. We are delighted to strengthen our long-term ties with PGGM, a similarly innovative partner.”

Eveline Takken-Somers, senior director at PGGM, said: “We are delighted about deepening and expanding our partnership with Swiss Re and we are impressed by the timeframe in which we managed to achieve this together. Through our investment in Viaduct Re we gain access to Swiss Re’s excellent global underwriting, modelling capabilities and claims handling expertise.

"This transaction allows us to further optimize our client’s steadily growing Insurance Linked Investments portfolio. We particularly value Swiss Re’s transparency and open mind towards new products and look forward to continuing to work with them.”