Investing in Insurance Linked Investments

Since 2006 PGGM has been investing in Insurance Linked Investments on behalf of the Pensioenfonds Zorg en Welzijn (“PFZW”). Over the past 12 years, this has grown into a mandate of over € 4 billion (June 30, 2018), or around 2% of PFZW’s assets under management. The asset class offers attractive, risk-adjusted returns on a stand-alone basis and unique diversification benefits from the traditional asset classes such as equity and debt.

PGGM strives for an efficient implementation in executing this mandate for PFZW. In doing this, we look to adapt to the needs of the industry by finding innovative solutions together with our long-term strategic partners. Today’s announcement of the creation of Vermeer Reinsurance Ltd, launched by RenaissanceRe Holdings Ltd and capitalised by PGGM on behalf of PFZW, is an example of such a long-term partnership initiative.

To invest in Insurance Linked Investments it is crucial to have a thorough understanding of the industry and the risks involved. In addition, it is essential to take a long-term perspective. In our paper “Investing in Insurance Linked Investments” (PDF) we elaborate on this asset class: its origin, its benefits, its risks, how these are managed and how we implement our investment mandate.