Coca-Cola pension fund ILS assets fell 26% to $246m by end of 2022

The pension fund of global beverage and food giant the Coca Cola Company saw its allocation to insurance-linked securities (ILS) shrink again in 2022, falling by almost 26% over the course of the year, to just $246 million.

The Coca Cola fund ILS allocation is one of the pensions investing in insurance-liked securities (ILS) that it is easier to track.

Its allocations have fluctuated in recent years, with catastrophe loss activity assumed to be one of the drivers.

The corporate pension fund of Coca-Cola Company has been invested in insurance-linked securities (ILS) for a number of years.

At one stage, the allocation equated to almost 7% of the Coca Cola corporate pension plan assets at close to $600 million, demonstrating its appetite for reinsurance-linked investment exposure.

That was back at the end of 2016, since when the Coca Cola pensions allocation to insurance-linked securities (ILS) has steadily shrunk.

The shrinking has continued in 2022, with the pension funds ILS assets falling almost 26%, from $330 million at the end of 2021, to just $246 million at the end of last year.

Coca Cola has had both catastrophe bond and private ILS or collateralized reinsurance fund allocations in its time investing in ILS and we understand Securis was a manager for the pension fund at one stage.

Losses experienced by the ILS and reinsurance market in 2017 and 2018 triggered a shrinking of the ILS allocation over the next few years, with hurricane Ian possibly a driver of the more significant shrinking of the ILS assets in 2022, we imagine.

The Coca Cola pension fund has been allocated to ILS for close to a decade. So it will be interesting to see whether the pension increases its allocation in 2023, given the greatly improved return environment and harder reinsurance pricing.

The Coca Cola Company pension is just one of the numerous pension fund and major ILS investors we track in our directories here.