Since 2010, ILI has a stand-alone allocation from PGGM underpinning its relevance in the overall portfolio mix with the objectives of contributing returns that are uncorrelated from economic scenarios and financial markets and helping PFZW’s participants to achieve a stable pension.
As per 31 December 2023, we have around €8.2 billion invested in ILI. We partner with Insurance Linked Securities ("ILS") managers and (re)insurers, leaders in natural catastrophe risk, by assuming or sharing risk in remote yet high-impact events like earthquakes and hurricanes. With a consistent, long-term investment philosophy and a dedicated team of professionals, we have become one of the most experienced and largest investors in the ILI market worldwide.
all market leaders
since inception
as per the end of 2023
ILI provides attractive long-term risk-adjusted returns as well as an excellent diversification for a traditional pension fund investment portfolio. It also contributes to helping countries, people and businesses to deal with the effects of climate change and natural disasters which are becoming more and more frequent because of the climate change. By investing in ILI, we help the insurance companies to increase their capacity to insure more homes and business and thanks to that more funds become available to recover from and to increase resilience against the natural disasters.
ILI provides attractive long-term risk-adjusted returns as well as an excellent diversification for a traditional pension fund investment portfolio. It also contributes to helping countries, people and businesses to deal with the effects of climate change and natural disasters which are becoming more and more frequent because of the climate change. By investing in ILI, we help the insurance companies to increase their capacity to insure more homes and business and thanks to that more funds become available to recover from and to increase resilience against the natural disasters.
ILI is an asset class that truly diversifies a portfolio of traditional assets. This is shown by the low correlation between returns on ILI and the returns on equities and bonds in times of financial distress. Our ILI portfolio derives its main income from (re)insurance risk premium subtracting losses caused by natural catastrophes. There is no relation between the occurrence and magnitude of natural catastrophes and the systemic risk underlying traditional asset classes.
It is a core belief of PGGM Asset Management that sustainable development is necessary to generate good and stable investment returns in the long run. Therefore, PGGM integrates sustainability factors in the due diligence process of its ILS managers and (re)insurance partners.
The ILI mandate is managed by the Credit & Insurance Linked Investments (“CILI”) team, part of PGGM’s private markets platform. As per December 2023, the CILI team consists of 28 professionals with a diverse set of backgrounds and skills. The team also manages a mandate to invest in Credit Risk Sharing .
We are very proud to have been granted the ‘End Investor of the Year 2024’ Insurance Insider ILS Award. We received this award for the Insurance Linked Investments mandate we execute for our client PFZW.
The ILS Awards are covering the global insurance linked securities market. The aim of the awards is to recognise excellence in, and help bring mainstream attention to, the industry. Insurance Insider notes that the “end investor of the year has taken a dominant role among institutional firms active in ILS, showcasing the long-term gains that can be made from this alternative asset class. [PGGM’s] expert in-house team have built a $9bn portfolio supporting a broad base of ILS players. The firm has been a public leader pushing for strong governance in the asset class. We received supporting testimony for the firm portraying it as a "trendsetter" for ILS investors and praising its "agnostic and efficient" allocation methods."
PGGM has a twelve year long track record in investing in Insurance Linked Investments.
PEMBROKE, Bermuda - RenaissanceRe Holdings Ltd. (NYSE:RNR) (“RenaissanceRe”) and Dutch pension fund manager PGGM announced today the creation of Vermeer Reinsurance Ltd. (“Vermeer”) to provide capacity focused on risk remote layers in the U.S. property catastrophe market.
For questions please, contact Eveline Takken-Somers.
