ILS investors

The RBS pension scheme increased its allocation to insurance in 2018, including catastrophe and life insurance risks, according to its most recent annual report.

The allocation to ILS was 5.4 percent of the fund’s $7.4bn assets at the end of 2018.

At Munich Re's ILS roundtable in Monte Carlo, one of the speakers raised the concept of whether a "flight to quality" amongst ILS investors might be better labelled a "flight to alignment".

Managing director Philipp Graf said the new arrangement with Allen Partners would bring the full suite of Twelve’s products to institutional investors in Australia and New Zealand.

Reinsurance conditions began moving in investors’ favour in mid-year 2019, marking a delayed reaction to 2017-2018 losses.

Danish pension fund PKA is to close its ILS strategies and will no longer have any investments in the sector at the end of 2019, a spokesperson for the fund told Trading Risk.

The North Yorkshire Pension Fund upped its ILS investments while the BBC Pension Scheme pulled back.

ILS funds posted gains in June and July, clawing back four consecutive months of declines, according to the Eurekahedge ILS Advisers Index.

It holds $241mn in catastrophe reinsurance after lifting its allocation in 2018.

The fund now has £159.4mn allocated to ILS through Leadenhall Capital Partners.

The scheme now holds £41.2mn via Securis, compared with £98.1mn last year.

The Oregon Public Employees fund held $119.3mn in two Nephila funds at year end 2018.