Swiss Re’s 1863 ILS fund secures an investment of 250 million dollars from Swedish Alecta
Swiss Re Insurance-Linked Investment Management Ltd (SRILIM), the investment manager for the global reinsurer’s natural disaster-focused fund platform 1863, has secured an investment of USD 250 million from the Swedish pension fund Alecta.
Swiss Re’s wholly owned subsidiary, SRILIM, received permission from FINMA to act as an asset manager for investment funds in November 2020.
SRILIM was founded to manage and create an independent fund company, 1863 Fund Ltd, designed to offer investors an effective way to participate in Swiss Res’ natural disaster operations.
Alecta, the largest private pension fund in Sweden, manages approximately 2.6 million customers’ assets and can, via the capital-efficient fund format, participate in the reinsurer’s nat cat operations and benefit from significant diversification potential and the company’s risk. knowledge and insurance expertise.
Chief Executive Officer (CEO) of SRILIM, Martin Bisping, said: “We are very pleased to have Alecta as a strategic partner. This marks a significant milestone, especially in terms of asset acquisition, in the still young history of our 1863 fund platform. , which has achieved strong investment results 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 to create attractive long-term returns for our customers. We manage our assets efficiently and sustainably and work with a select few partners where we see relevant investment opportunities.
“We are confident that insurance-related securities can generate high-quality and uncorrelated returns and are pleased to partner with Swiss Re to benefit from its extensive expertise in this area. We look forward to a long-term partnership.”
The launch of the fund meant that Swiss Re had for the very first time opened its nat cat portfolio for investors through a permanent fund format.
For investors, this move offers an easily accessible and widely accepted investment format for participating in a high-quality nat cat portfolio guaranteed by Swiss Re, the company said at launch.