Swiss Re to create new fund for institutional and designated professional investors to access natural catastrophe business

SRILIM will manage a newly created standalone fund, offering investors an efficient way to participate in Swiss Re’s natural catastrophe business
The move expands Swiss Re’s risk-sharing platform, strengthening its strategic partnership with third-party capital providers

Swiss Re, through its subsidiary Swiss Re Insurance-Linked Investment Management Ltd has received authorisation from the Swiss Financial Market Supervisory Authority (FINMA) for an asset management licence for funds. With this approval, the company will manage a standalone fund company, 1863 Fund Ltd, which will allow investors a new avenue to access Swiss Re’s natural catastrophe business.

The Core Nat Cat Fund, the initial fund under the newly created company, will mark the first time Swiss Re opens its natural catastrophe portfolio to investors through a permanent fund format. For investors, this move offers an easily accessible and widely accepted investment format to participate in a high-quality natural catastrophe portfolio underwritten by Swiss Re.

Martin Bisping, CEO of Swiss Re Insurance-Linked Investment Management Ltd, said: “This new fund will open a unique opportunity for investors to invest in the same book of business as Swiss Re, benefitting from Swiss Re’s global reach, client access, risk knowledge and underwriting.“

The move to attract additional alternative capital through a standalone fund company is in line with Swiss Re’s strategy to expand its natural catastrophe capacity. In 2019, Swiss Re established its Alternative Capital Partners team, specialised in creating investment partnerships with third parties through various forms, such as insurance-linked securities, retrocession, sidecars and the newly created fund platform.

John Dacey, Swiss Re’s Group Chief Financial Officer, said: “Swiss Re has laid out a clear pathway for its Alternative Capital Partners strategy. This allows for targeted growth of our natural catastrophe portfolio, while giving investors an attractive diversifying investment opportunity in an easily accessible format. With this new fund set up, we are broadening our partnership with alternative capital providers.“