Swiss Re gains huge investment to accelerate third-party ILS fund

Global reinsurer  Swiss Re, through its specialist fund management subsidiary  Swiss Re Insurance-Linked Investment Management (SRILIM), has secured a “substantial investment” of $250 million investment into its 1863 fund platform from the largest private pension fund in Sweden, Alecta.

Swiss Re said the strategic partnership and investment through its 1863 ILS fund platform will provide Alecta with a capital efficient fund format and enable it to participate in Swiss Re’s natural catastrophe business, benefiting from significant diversification potential as well as Swiss Re’s risk knowledge and underwriting expertise.

Alecta manages assets of approximately 2.6 million customers.

Martin Bisping, CEO of SRILIM, said: “We are very excited to have Alecta as a strategic partner. This marks a significant milestone, particularly in terms of asset raising, in the still young history of our 1863 fund platform, which achieved strong investment performance since its launch a year ago. I am confident that we will accelerate this positive momentum, as we continue to broaden our partnerships with alternative capital investors, such as Alecta.”

Tony Persson, head of fixed income and strategy at Alecta, said: “Our primary focus is on generating attractive long-term returns for our customers. We manage our assets in an efficient and sustainable manner, working with few select partners where we see relevant investment opportunities. We are convinced that insurance-linked securities can generate high-quality and uncorrelated returns and are pleased to partner with Swiss Re to benefit from its extensive expertise in this domain. We look forward to a long-lasting collaboration.”

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