International insurance company Swiss Re has launched a new insurance-linked investment (ILS) business, launching an SEC-registered advisor today called Swiss Re Insurance-Linked Investment Advisors Corporation (SRILIAC), which focuses on investment management.
The move comes as the reinsurance giant continues to improve and develop its expertise in managing third-party business investments, as well as helping investors access reinsurance-linked returns from its books of business.
Swiss Re Insurance-Linked Investment Advisors Corporation (SRILIAC) was launched today with an investment strategy that focuses on insurance-linked securities, particularly high-risk bonds, allowing investors to leverage Swiss Re’s existing investment expertise, based on natural disasters and writing.
Swiss Re has been investing and managing its in-house catastrophe and industrial property loss insurance (ILW) assets for many years, with the portfolio reaching growth in terms of assets under management of more than $1 billion last year.
When Swiss Re wants to bring third-party investors into its managed systems, especially cat bonds and implement this, the company named former ILS employee MariaGiovanna Guatteri as CEO of SRILIAC.
MariaGiovanna Guatteri has been working at Swiss Re for almost twenty years, starting at the risk management company, then working as Director of Insurance-Linked Securities trading, Director of ILS Prop Trading and recently Head of ILS Portfolio Management. .
Guatteri’s long-term experience in the ILS market and at Swiss Re enables him to help the company expand its investment management capabilities.
SRILIAC has been established to expand the scope of Swiss Re’s ILS investment management capabilities, and to complement its alternative ILS strategy focused on natural insurance contracts, managed by Swiss Re Insurance-Linked Investment Management Ltd. (SRILIM).
Swiss Re has launched SRILIM and the 1863 ILS Fund platform that it manages by the end of 2020.
With an active investment manager and a focused restructuring, Swiss Re can offer third-party investors multiple options for obtaining insurance and insurance-linked returns, and its support.
Investors can now access the natural risk book of Swiss Re, through SRILIM, or the wider risk market near Swiss Re through the new financial advisor SRILIAC.
In addition, Swiss Re also has its own shareholding units, including Sector Re, which gives many investors another way to interact with the reinsurance company and will remain active in supporting its risk bonds.
MariaGiovanna Guatteri, CEO of SRILIAC, commented on the launch of the new bond manager, “Swiss Re has been selling and investing in ILS for more than twenty years. We are now opening our capabilities to institutional investors, allowing them to benefit from our portfolio and establish risk analysis, portfolio management and operational expertise. We believe our focus on financial risk will resonate with investors who value investment and transparency.”
Philipp Rüede, Head Alternative Capital Partners at Swiss Re, added, “This move comes as the next step in the Group’s strategy for Swiss Re’s Alternative Capital Partners to increase the number of ways to create attractive partnerships with investors. SRILIAC’s investment strategy allows investors to benefit from Swiss Re’s team of experts and a team of cats created for risk selection.”
As we said earlier this year, Swiss Re’s income from ILS services has been growing steadily and the increase will increase when the new partnership of cats and the new units of the ILS fund manager start to grow.
ILS activities could be the best source of income for Swiss Re, depending on the number of reinsurers and the ability to access underwriting opportunities that can be shared with other insurers.
SRILIAC CEO Guatteri told Artemis, “SRILIAC is committed to supporting the growth and establishment of ILS as an investment group through long-term partnerships with institutional investors.
“In the short term, we want to expand Swiss Re’s franchise and the team’s ILS activities to position SRILIAC in the top tier of ILS Investment Managers.”