Sweden summary: Alecta invests $ 200 million via sidecar for real estate disaster | News
Alecta invests $ 200 million in Atlas Gotland Worldwide Catastrophe Sidecar, cooperates with the French real estate, non-life and life insurance company SCOR, and adds its assets to insurance-related securities (ILS).
The insurer said that Alecta – Sweden’s largest pension fund – would be exposed to its diversified portfolio of reinsurance of property disasters through a multi-year agreement.
Tony Persson, Head of Interest Rates and Strategy at Alecta, said: “We are confident that insurance-related securities can generate high-quality and uncorrelated returns that benefit our overall portfolio and are pleased to partner with SCOR given their expertise in this area. “
SCOR said the sideline was a segregated account for the company’s newly created special purpose reinsurer, Atlas Re in Bermuda, adding that the partnership was part of its strategy to provide access to its underwriting franchise to institutional investors through third-party capital transactions.
Jean-Paul Conoscente, CEO of SCOR Global P&C, said: “This is another important milestone in the development of SCOR’s third-party capital strategy, with an important partnership with a leading pension fund.”
Yesterday, Alecta announced that it is investing $ 250 million in the 1863 Swiss Re Insurance-Linked Investment Management (SRILIM) fund platform, giving the company exposure to natural disasters.
AP3 is investing EUR 300 million in the Verdane effect-focused fund
The Swedish state pension buffer fund AP3 invests – together with others – via a financing round of 300 million euros in an impact-focused fund managed by the equity manager Verdane, which the manager said will finance European technology-based companies that have contributed to the UN Sustainable Development Goals (SDGs).
Verdane said the fund, Idun I, had closed with its € 300 million hard ceiling, exceeding its € 225 million target, and had made three investments so far – one in Auntie, a digital workplace well-being provider; one in Spond, a digital enabler for grassroots sports and physical health; and a third in a business that contributed to a low-carbon society, which will be announced in the coming weeks, according to the company.
It said that investors in the fund included AP3, the Norwegian state climate investment fund Nysnø Climate Investments, Adams Street Partners, an investment management company in private markets, and clients advised by Mercer.
Verdane said its fund had three main investment focuses – energy conversion; sustainable consumption; and resilient societies. Every investment the fund made would need to address at least one of the SDGs, it said.
The company also said that its portfolio companies would also need to report regularly on their own sustainability key ratios (CPIs), adding that both the fund’s interest-bearing and credit facilities, which are operated by Nordea, were linked to target fulfillment.