Global reinsurer Swiss Re has wrapped up its second private sidecar transaction with PGGM, increasing the Dutch pension fund manager’s overall investment in the sidecar vehicle to over $500 million.
Viaduct Re Ltd. is a special purpose insurer and segregated accounts company that provides PGGM access to a portion of Swiss Re’s core natural catastrophe property treaty reinsurance portfolio.
The transaction increases PGGM’s investment into an initial sidecar established in July 2019, which focuses on US property reinsurance risks.
The transaction can be viewed as a further milestone for Swiss Re’s Alternative Capital Partners team, which enables Swiss Re to grow its natural catastrophe book and proactively manage its risk appetite by making use of a broad range of third-party capital and retrocession instruments.
“We are very excited to strengthen our relationship with one of the leading and most sophisticated investors in the ILS market,” said Philipp Rüede, Head Alternative Capital Partners at Swiss Re.
“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.”
“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,” Eveline Takken-Somers, Senior Director at PGGM.
“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.”
