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 2024, we have around €8.4 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 2024
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.
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 Insurance Linked Investments (“ILI”) team, part of PGGM’s private markets platform. The team consists of 12 professionals with a diverse set of backgrounds and skills.
For questions please, contact Eveline Takken-Somers.
