Philippe Trahan leaves Ontario Teachers’ Pension Plan (OTPP) in re-org

One of the longest-standing end-investor allocators to the insurance-linked securities (ILS) market has left his employer, as a re-organisation at the Ontario Teachers’ Pension Plan (OTPP) sees its Managing Director of ILS Philippe Trahan departing the organisation.

The Ontario Teachers’ Pension Plan (OTPP) was an early move into the ILS investments space back in 2005 and is one of the end-investors with the longest tenure in ILS and catastrophe bonds.

Philippe Trahan joined Ontario Teachers’ in 2007 after a few years working at reinsurance broker Aon, becoming the pension funds’ Director of ILS, leading all catastrophe bond and reinsurance investment activities at OTPP. He later became Managing Director of ILS.

Now, after almost 17 years dedicated to investing in ILS with the pension, Trahan has left the organisation during a restructuring of the investment team there.

We understand that Agnes Chang, Principal, Insurance-Linked Securities at OTPP remains at the pension plan and will be leading ILS investment activities, but now has a new reporting line to the hedge fund strategy leader after the reshuffle.

Trahan’s role at OTPP has not been filled by anyone else, we understand.

OTPP had undergone a restructure in the Capital Markets division, which is where the ILS investment operations sat, as its Senior Managing Director, Capital Markets moved up to a new position as Chief Investment Officer, Public & Private Investments, leaving the Capital Markets leadership position (where ILS previously reported into) still to be filled, we understand.

As an allocator, Philippe Trahan has one of the longest-track records in the ILS market and he is well-known and liked in the industry, not least for his insightful opinions on the asset class and its need to deliver the returns investors seek.

Under Trahan’s watch, the OTPP pension allocation to ILS grew significantly, allocating across the 144A catastrophe bond market as well as other collateralized reinsurance and managed fund structures.

OTPP has in that time had as much as $2 billion deployed into ILS investment opportunities. The investor was also known for flexing its allocation with the market opportunity, down-sizing it when conditions were deemed less conducive, under Trahan’s watch.

Trahan was known for his sophisticated investment approach and deep knowledge of the ILS landscape. He was the driver behind a number of innovative private ILS deals over the years and he also helped to diversify the OTPP ILS portfolio into lines of business outside of pure catastrophe risk in his time at the pension fund.

Trahan has contributed to a number of important initiatives, particularly in relation to climate risk where he has been a strong proponent of the need to measure climate exposure more accurately within reinsurance contract exposures and assets.

Trahan also contributed to the Climate Insurance Linked Resilient Infrastructure Finance concept, a long-term climate insurance product, that the UN Capital Development Fund (UNCDF) has been working on in collaboration with market participants and investors.

In addition, Trahan has always been incredibly generous in sharing his insights into the ILS asset class with us at Artemis, which we have greatly appreciated over the years.

We understand he will take some time out to spend with his family, before looking for a new opportunity.