Swiss Re Insurance-Linked Investment Management Ltd (SRILIM), the investment manager of the global reinsurer’s natural catastrophe-focused 1863 fund platform, has secured an investment of USD 250 million from Swedish pension fund, Alecta.
Swiss Re’s wholly owned subsidiary, SRILIM, received authorisation from FINMA to act as an asset manager for investment funds in November of 2020.
SRILIM was established to manage and create a standalone fund company, 1863 Fund Ltd, designed to offer investors an efficient way to participate in Swiss Re’s natural catastrophe business.
Alecta, the largest private pension fund in Sweden, manages the assets of some 2.6 million clients, and via the capital efficient fund format, is able to participate in the reinsurer’s nat cat business and take advantage of significant diversification potential as well as the firm’s risk knowledge and underwriting expertise.
Chief Executive Officer (CEO) of SRILIM, Martin Bisping, 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, added: “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.”
The launch of the fund meant that for the very first time, Swiss Re had opened its nat cat portfolio to investors through a permanent fund format.
For investors, this move offers an easily accessible and widely accepted investment format to participate in a high-quality nat cat portfolio underwritten by Swiss Re, said the firm at time of launch.
