Swiss Re Launches Catastrophe Bond Focused Investment Adviser

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Swiss Re Launches Catastrophe Bond Focused Investment Adviser

With the introduction of Swiss Re Insurance-Linked Investment Advisors Corporation (SRILIAC), a new investment advising organization with a specific focus on catastrophe bonds, the world leader in reinsurance Swiss Re has improved its insurance-linked securities (ILS) offering.

Swiss Re claims that SRILIAC, a newly formed, fully-owned subsidiary, employs an investment strategy that is complementary to that of Swiss Re Insurance-Linked Investment Management Ltd. (SRILIM), a subsidiary that was established in 2020 with a focus on natural disaster reinsurance contracts.

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As a SEC registered investment adviser, the newly launched SRILIAC’s investment strategy will focus on ILS, primarily catastrophe bonds. This, says Swiss Re, will enable investors to access the reinsurer’s capabilities in catastrophe bond investments, natural catastrophe modelling, and underwriting.

Swiss Re-Launches Catastrophe Bond Focused Investment Adviser

Now, with the opportunity to leverage both investment managers SRILIM and SRILIAC, qualified institutional investors can access Swiss Re’s core natural catastrophe book of business, or the broader catastrophe bond marketplace alongside Swiss Re, the world’s largest reinsurance company.

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CEO of the financial advisory firm Maria Giovanna Guatteri stated: “Swiss Re has been trading and investing in ILS for more than two decades. Institutional investors can now take advantage of our track record, proven risk analytics, portfolio management, and operational knowledge thanks to the expansion of our capabilities. We think that investors that appreciate transparency and liquidity will be closely aligned with our focus on catastrophe bonds.

Philipp Rüede, Head of Alternative Capital Partners at Swiss Re, added: “This move comes as the natural next step in the Group’s strategy to have Swiss Re’s Alternative Capital Partners expand the options for attractive investment partnerships with institutional investors. SRILIAC’s investment strategy allows investors to benefit from Swiss Re’s experienced team and a cat bond portfolio constructed through disciplined risk selection.”

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Swiss Re-Launches Catastrophe Bond Focused Investment Adviser

As tracked on our ILS-focused sister site Artemis and its extensive deal directory of catastrophe bond transactions, Swiss Re has sponsored a fair amount of its own catastrophe bonds over the years, the most recent being a $200 million Matterhorn Re Ltd. (Series 2022-2) deal in June.

At the same time, the company has been managing a portfolio of cat bonds for a number of years now, not just its own, and that internally managed portfolio stood at more than $1 billion in size in late 2021 and is likely larger now.

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So, it seems that the establishment of SRILIAC is about Swiss Re opening up that portfolio to external investors, as well as formalising it under an investment advisor.

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