Swiss Re, via its subsidiary Swiss Re Insurance-Linked Investment Advisors, will co-manage GAM’s ILS fund range, including the GAM Star Cat Bond UCITS Fund, starting 7 May 2025
GAM is delighted to announce it has formed a strategic and long-term partnership with Swiss Re, one of the world’s leading providers of reinsurance, insurance and a leader in the ILS marketplace.
With a strong pedigree and history in the ILS market, the unique and expert combination formed by this partnership positions Swiss Re and GAM as leaders in Cat Bond and ILS investing for the benefit of clients.
As co-investment manager, Swiss Re will be responsible for investment and portfolio management decisions, while GAM will retain responsibility for risk management oversight and will lead global distribution and product structuring. Swiss Re and GAM will also collaborate on ILS innovation together.
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The Swiss Re Group is one of the world’s leading providers of reinsurance, insurance and other forms of insurance-based risk transfer, with a track record spanning more than 160 years. It has been a pioneer in catastrophe bonds (cat bonds) since the market was created in the 1990s, acting as a leading sponsor of cat bonds and sidecars and, through Swiss Re Capital Markets, is also a leading arranger of cat bonds having arranged transactions with a notional value of approximately USD 50 billion. This accounts for more than a quarter of the notional value of all cat bonds issued since 1997.
Investors in GAM’s cat bond and ILS funds will now benefit from Swiss Re’s extensive risk knowledge and underwriting expertise, including more than 50 dedicated scientists working in catastrophe risk, over 190 proprietary peril models and approximately 200 terabytes of curated portfolio data. Investors will continue to leverage GAM’s robust institutional framework, combining a strong infrastructure, rigorous risk management, and tailored investment solutions, with exemplary client service delivering operational excellence and an institutional platform of the highest standards.
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The funds will be co-managed by SRILIAC, a Swiss Re wholly-owned subsidiary and a US Securities and Exchange Commission registered investment adviser. The SRILIAC unit is led by Mariagiovanna Guatteri, who has more than 20 years’ experience in cat bond portfolio management and natural catastrophe modelling at Swiss Re, including managing Swiss Re’s proprietary ILS investments and managing third party capital for Swiss Re’s ILS-related investment strategies.
Mariagiovanna Guatteri, CEO and CIO of SRILIAC, commented: “The ILS market set new records in 2024 and strong returns on cat bonds have highlighted the attractiveness and diversification value of the asset class for investors. It is an exciting time for the industry and we see considerable interest both from cat bond issuers and investors.”
Cat bonds, which are issued to provide financial protection against potential losses from natural catastrophes or other perils, allow investors to access an asset class, whose returns have low correlation with other financial markets asset classes.
The cat bond market continues to grow due to increased demand for risk transfer primarily driven by economic development, concentration of insured values in exposed areas, changing vulnerability and climate change. The asset class offers investors a scalable and diversifying investment opportunity.
Dr. Rom Aviv, the newly appointed Head of ILS at GAM, brings 17 years of experience spanning buy-side and sell-side roles, with deep expertise in modelling, structuring, and product development across ILS, reinsurance, and capital markets. He commented: “The resilience of Cat Bonds in the face of market volatility, delivering attractive, diversifying returns above the risk-free rate, has been reinforced by 25 years of empirical evidence. GAM and Swiss Re have been key pioneers in scaling and evolving this asset class for over two decades, with this partnership bringing together investment management expertise, underwriting capabilities, and a state-of-the-art client infrastructure to ensure investors access truly compatible and tailored solutions. I am thrilled to join GAM, lead the expansion of its ILS business, and partner with the foremost reinsurer in the ILS space.”
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Elmar Zumbuehl, Group CEO of GAM Investments said, “For 20 years GAM has provided clients with access to portfolio diversifying Catastrophe and Insurance Linked Securities globally. We are proud of our significant contribution to the asset class, having helped several thousand clients access and invest in GAM Cat Bond and ILS strategies. GAM and Swiss Re’s combined strengths across global distribution, product innovation,risk management and investment expertise will help make an already exciting asset class more accessible to our clients.”
Christopher Minter, Head of Swiss Re Alternative Capital Partners, said: “We are delighted to partner with GAM to co-manage their cat bond and ILS investment strategies. We look forward to working with GAM to bring Swiss Re’s unparalleled risk knowledge and cat bond industry experience to investors.”
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Source – PR Newswire
