The insurance-linked securities (ILS) and reinsurance investments portfolio of Dutch pension PFZW, which is managed by pension funding agency PGGM, delivered a 15.1% return for full-year 2024, whereas in asset phrases the allocation was just a little down year-on-year however flat by the fourth-quarter.
The most recent determine for property below administration, of what’s the largest single investor ILS allocation available in the market, ended December 2024 at across the US $8.68 billion degree, which in greenback phrases was roughly flat for the quarter, which is the forex most if not all allocations are made in.
In greenback phrases, the PFZW ILS allocation had been valued at simply over US $9 billion on the finish of 2023.
Whereas in Euro phrases, the PFZW ILS funding portfolio was valued at EUR 8.2 billion on the finish of 2023, nearly EUR 7.9 billion on the finish of Q3 2024 and EUR 8.36 billion on the finish of the 12 months.
2024 noticed the enormous ILS portfolio delivering enticing returns once more for PFZW, leading to a 15.1% full-year efficiency (Euro hedged).
That was barely down on the return achieved in 2023, when the ILS portfolio delivered a Euro hedged 16.5%, which in USD equated to a 19.8% return.
The fourth-quarter of 2024 noticed the PFZW ILS portfolio return 3.1%, down on the 5.8% reported for Q3, however improved on Q2’s 2.2% and near Q1’s 3.2%.
12 months-on-year, the This autumn return was decrease than the identical interval in 2023 when the ILS portfolio returned 4.2% for the Dutch pension fund and investor.
For the full-year, in 2024 solely the listed fairness portfolio allocation of the PFZW pension carried out higher. Whereas the 15.1% return of the disaster bond and ILS fund, in addition to different reinsurance linked investments portfolio, far out-performed most different asset class buckets that PFZW stories on.
On the finish of 2024, the ILS portfolio managed by PGGM for its pension fund consumer PFZW made up 3.2% of its whole web invested property, so hitting the goal allocation.
Over the course of 2024 the PFZW ILS portfolio was comparatively steady, albeit with some adjustments to allocation combine.
As of the top of September 2024, no adjustments to the steady of ILS fund managers, sidecars and reinsurance funding partnerships has been reported, with no adjustment to every allocation allowance in Q3.
However, as we reported in October, a $200 million allocation was made to a vehicle named Scenery Re Ltd., a quota share structure managed by Everest unit Mt. Logan Capital Management.
As well as, we additionally reported in November that PGGM had subscribed for an additional $175 million of shares in the RenaissanceRe managed joint-venture rated reinsurance underwriting vehicle Vermeer Re during the third-quarter of 2024, on behalf of PFZW.
So with these new allocations made and little change within the general portfolio measurement in the identical interval, it appears there could have been some adjustment, or shrinking inside a few of the different ILS allocations included within the PFZW portfolio, though not notably significant given its vital scale.
PGGM stays the most important single investor listed in our directory of pension funds and sovereign wealth funds investing in ILS and reinsurance.
