French reinsurer SCOR has secured a $200 million investment from the Swedish pension fund Alecta into its Atlas Gotland Worldwide Catastrophe Sidecar, a segregated account of the firm’s newly created special purpose reinsurer, Atlas Re in Bermuda.
Yesterday, Alecta announced an investment of $250 million into Swiss Re Insurance-Linked Investment Management Ltd (SRILIM), the investment manager of Swiss Re’s natural catastrophe-focused 1863 fund platform.
So, this is the second time in as many days that the Swedish pension fund has allocated to the insurance-linked securities (ILS) space.
From its investment in SCOR’s collateralised reinsurer sidecar, Alecta stands to benefit from the performance of the reinsurer’s portfolio of property catastrophe reinsurance through a multi-year agreement.
Jean-Paul Conoscente, Chief Executive Officer (CEO) of SCOR Global P&C, commented: “We are very pleased to strengthen our relationship with Alecta through this long-term partnership and to further expand SCOR’s strategy of giving access to its underwriting franchise and diversified portfolio to institutional investors through third-party capital transactions.
“This is another important milestone in the development of SCOR’s third-party capital strategy, with an important partnership with a leading pension fund.”
Tony Persson, Head of Fixed Income and Strategy at Alecta, added: “Our focus is on generating solid long-term returns for our customers being 2.6 million people and 35,000 businesses across Sweden.
“We manage our assets in a cost efficient and sustainable manner, working with few select external partners where we see relevant investment opportunities.
“We are convinced that insurance-linked securities can generate high-quality and uncorrelated returns benefiting our overall portfolio and are pleased to partner with SCOR given their expertise in this domain. We look forward to a long-lasting collaboration.”