The SCOR Atropos ILS fund AuM surpasses $2bn, SCOR IP nears $3.2bn

French reinsurer SCOR’s asset management company, SCOR Investment Partners, has announced the expansion of one of its core insurance-linked securities (ILS) fund strategies, Atropos, with assets under management (AuM) now exceeding the $2 billion threshold.

SCOR, one of Europe’s big four reinsurers, witnessed significant AuM growth within its Atropos ILS fund over the past year, which it says demonstrates excellent investment management results in the wake of Hurricane Ian.

Towards the end of 2020, SCOR revealed that the Atropos fund AuM had surpassed the $1 billion threshold, taking overall SCOR Investment Partners ILS AuM across the SCOR IP ILS funds, and those managed by its London subsidiary Coriolis Capital Limited, to roughly $2.4 billion.

Today, SCOR IP has confirmed that following the continued growth in AuM at Atropos, total ILS AuM across the group now sits at almost $3.2 billion, so is up 33% from the end of November 2020.

The SCOR IP ILS platform is led by Sidney Rostan, and also manages a second flagship fund, the Atropos Catbond Fund, which invests solely in catastrophe bonds, and which currently has more than $790 million in AuM.

The reinsurer says that conditions in the ILS marketplace remain buoyant, both in the catastrophe bond and private reinsurance transaction segments. The primary market has been very active as a result of persistent demand for protection, and with yields at historically attractive levels, SCOR feels that conditions are favourable for strengthening performance and reducing portfolio risks.

Chief Executive Officer (CEO) of SCOR IP, Fabrice Rossary, commented, “To reach this milestone after a year marked by Hurricane Ian the second most expensive insured natural event in history, after Hurricane Katrina in 2005, confirms our clients’ confidence in our approach.”

Initially launched in August 2011, the Atropos ILS fund targets annual absolute returns of between 6% and 8%, while offering monthly liquidity to investors.

SCOR explains that the investment philosophy rests on transparency, risk management and diversification while the robustness of the investment approach was tested, and confirmed, in 2022.

The reinsurer has said previously that it plans to place ILS at the heart of its global reinsurance business, and the growth in both Atropos and the overall ILS strategy shows its ongoing commitment to the space.

Yesterday, the company announced the shrinking of its renewal book by 12% at the January 2023 renewals, although expressed confidence that the hard market will persist and it will have opportunities to deploy additional capital later in the year.