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Insurance Linked Investments

PGGM has been investing in Insurance Linked Investments ("ILI") since 2006 on behalf of PFZW, the Dutch pension fund for the care and healthcare sector.

 

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. 

13 ILS managers and reinsurers

all market leaders

11 Investments in Nightingale Re

since inception

8.2 billion (EUR) invested

as per the end of 2023

Why invest in ILI Our core beliefs

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. 

ILI at PGGM

PFZW has given PGGM a mandate to invest in ILI focused on natural catastrophe risk. PGGM implements this mandate on the basis of a philosophy consisting of six interrelated core investment beliefs. Here we highlight our core strategy and philosophy.

ILI at PGGM

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. 

ILI at PGGM
Xtraimage ILI

Key Topics

Diversification 

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. 

CILI 1

 

ESG in Insurance Linked Investments 


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. As part of our core beliefs, PGGM integrates environmental, social and governance (“ESG”) factors in the due diligence process of its ILS managers and (re)insurance partners. 

Read more

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Publications on ILI

Ciliteam

 

PGGM CILI Team

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 .

 

Meet the team

 

Press Coverage and Recognition

Related Articles

  • 18 dec 2018
  • Blog
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Investing in Insurance Linked Investments

PGGM has a twelve year long track record in investing in Insurance Linked Investments.

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  • 18 dec 2018
  • Press release
  • Investments

RenaissanceRe Launches New Property Catastrophe Reinsurer Backed By PGGM

​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.

Questions?

For questions please, contact Eveline Takken-Somers. 

Eveline Takken Somers 480X480 Pggm

Eveline Takken-Somers

Lead Portfolio Manager