Swiss Re opens cat bond advisory for institutional investors

Swiss Re is branching out into investment advice, creating a new business unit that provides institutional investors with investment management services focused primarily around insurance-linked securities like catastrophe bonds.

The reinsurance giant says the new subsidiary, called Swiss Re Insurance-Linked Investment Advisors Corporation (SRILIAC), will allow investors to access Swiss Re’s expertise around catastrophe bond investments, natural catastrophe modelling and underwriting.

It will complement Swiss Re's other investment strategy focused on natural catastrophe reinsurance contracts. Investors will now be able to access either Swiss Re's core natural catastrophe book or the broader catastrophe bond market alongside Swiss Re.

Investors benefit from Swiss Re’s experience and discipline

Mariagiovanna Guatteri, CEO of SRILIAC, says: "Swiss Re has been trading and investing in ILS [insurance-linked securities] for over two decades. Now we are opening our capabilities to institutional investors, allowing them to benefit from our track record and established risk analytics, portfolio management and operational expertise. We believe that our focus on catastrophe bonds will closely align with investors who value liquidity and transparency."

Philipp Rüede, Head Alternative Capital Partners at Swiss Re, adds: "This move comes as the natural next step in the group's strategy to have Swiss Re's Alternative Capital Partners expand the options for attractive investment partnerships with institutional investors.

“SRILIAC's investment strategy allows investors to benefit from Swiss Re's experienced team and a cat bond portfolio constructed through disciplined risk selection."