PGGM added new allocation to Integral ILS managed fund in 2022

It’s become apparent that PGGM, the Dutch pension fund investment manager that allocates the largest amount to the insurance-linked securities (ILS) market on behalf of end-client the Dutch pension PFZW, added a new ILS manager to its allocation list in 2022, with an investment into a fund managed by Integral ILS.

We reported recently on the evolution of the PGGM invested insurance-linked securities (ILS) portfolio, which it invests on behalf of the PFZW pension scheme.

The overall allocation remains the largest from a single source in the ILS market, at around US $8.8 billion (EUR 8.1bn) at the mid-point of 2023.

With multiple ILS manager allocations and partnership investment structures with global reinsurance companies, the ILS strategy followed by PGGM for its pension investor PFZW is both large and increasingly broad.

But it now transpires there was room for one more manager last year, with a first allocation to Bermuda-based Integral ILS made.

This has come to light in a further update to PFZW’s ILS and reinsurance portfolio, which added the details on the Integral ILS investment to the list.

We’re not sure exactly when this investment was made in 2022, likely the start, or mid-year, or perhaps even towards the end of the year to be deployed at 2023 renewals.

Integral ILS is a growing insurance-linked securities (ILS) investment fund manager that was founded by experienced ILS industry executives Richard Lowther and Lixin Zeng.

When we last reported on Integral ILS, it had grown its assets under management to a new high of $2 billion at the mid-point of this year.

PGGM, on behalf of PFZW, has invested in a fund named Riemann Fund Ltd., which is managed by Integral ILS Ltd.

The allocation size is not known, but the target for this allocation is for between US $50 million and $250 million to be deployed at any one time.

This Riemann ILS fund strategy invests in insurance-related investments through private reinsurance contracts worldwide, PFZW’s allocation information states.

It’s good to see another new investment source added to the PGGM / PFZW list, as it drives home this investors appetite for maintaining a robust allocation to insurance-linked securities (ILS), across multiple managers and market entry-points.

PGGM remains the largest single investor listed in our directory of pension funds and sovereign wealth funds investing in ILS and reinsurance.