Swiss Re creates fund for investors to access natural catastrophe business


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

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

“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,” said Martin Bisping, CEO of Swiss Re Insurance-Linked Investment Management.

The move to attract additional capital through a standalone fund company aligns with Swiss Re’s goal to expand its natural catastrophe capacity. In 2019, the reinsurance giant established its Alternative Capital Partners team, which specialises in creating investment partnerships with third parties.

“Swiss Re has laid out a clear pathway for its Alternative Capital Partners strategy,” said John Dacey, Swiss Re group chief financial officer. “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.”

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