Swiss Re SRILIM’s 1863 ILS fund unit surpasses $1bn, as overall ACP assets hit $5bn

Swiss Re Insurance-Linked Investment Management Ltd. (SRILIM), a specialist insurance-linked securities (ILS) fund management unit of the global reinsurance company, has now surpassed a new milestone of more than $1 billion in assets under management (AUM).

At the same time, we understand that assets under management across the Alternative Capital Partners (ACP) division of Swiss Re have now reached $5 billion at April 1st, of which $3.4 billion is from third-party investors.

Swiss Re Insurance-Linked Investment Management Ltd (SRILIM) was founded in 2020 as a fully-owned subsidiary of the reinsurer and it acts as the investment manager for the 1863 fund platform, providing investors a mechanism through which to access returns of the reinsurers’ natural catastrophe underwriting business.

SRILIM explained that its dedicated fund company, 1863 Fund Ltd. which includes the Core Nat Cat Fund (CNCF) strategy, has recently surpassed the milestone of US $1 billion level in assets under management.

The Core Nat Cat Fund strategy provides institutional and designated professional investors a way to proportionally participate in Swiss Re’s core natural catastrophe (nat cat) book.

This allows them to benefit from the reinsurer’s proprietary risk modelling capabilities, underwriting expertise and differentiated market access.

As an ILS fund, the Core Nat Cat strategy has innovative product features, such as the way it completely mitigates the effects of trapped capital and allows for the immediate deployment of investor capital at any point in the calendar year.

Martin Bisping, Co-CEO of SRILIM, commented, “We are very proud to celebrate this important milestone. Surpassing the USD 1 billion mark is a confirmation that nat cat reinsurance continues to represent a compelling value proposition for investors seeking attractive returns that are largely uncorrelated to other asset classes.”

Bernard Bachmann, Co-CEO of SRILIM, added, “Growth in the nat cat market is supported by fundamental drivers as the last few years have brought significant changes in the reinsurance market: investors have benefited from significantly improved rates, structures and wordings. Reaching this AuM milestone highlights our strategy’s attractive proposition and we are looking forward to continuing this exciting journey with our investors.”

Swiss Re has been steadily growing its insurance-linked securities (ILS) assets under management and the SRILIM strategy is key to that growth, being a direct way for investors to access the returns of its natural catastrophe underwriting business.

The SRILIM Core Nat Cat Fund strategy offers a similar risk profile to a quota share with Swiss Re, in the way it is structured as a proportional share, but in a fund format is more easily accessed for many investors and can be invested in with lower commitments than a direct quota share with a major reinsurer would typically require.

Swiss Re also operates its flagship Sector Re quota share sidecar, private sidecar single investor vehicles such as Viaduct Re which is backed by PGGM, plus its newer catastrophe bond focused SEC registered investment adviser, Swiss Re Insurance-Linked Investment Advisors Corporation (SRILIAC).

As we reported earlier this year, the growth in assets at Swiss Re’s Alternative Capital Partners (ACP) operation have helped to drive fee income earned higher for the reinsurer, reaching $195 million for full-year 2023.

More details on Swiss Re’s ILS management activities can be found in our ILS manager directory.