The next time Munich Re starts moaning about climate change and how we're all going to die, or at minimum go broke, just remember reinsurance/cat bonds are a for-profit business and that some folks a couple hundred miles southwest of München, who might have access to some very sharp minds in the reinsurance/cat bond business, seem to think this is a profitable place to put some longer term money.
From Artemis, October 7:
The City of Zurich Pension Fund announced a rebalancing of its portfolio strategy, part of which will see the investor as much as double its allocation to the insurance-linked securities (ILS) asset class.
The City of Zurich Pension Fund manages roughly 21 billion Swiss francs in assets, which equates to more than US $22.5 billion.
Currently, as of the end of September 2021, the pensions allocation to insurance-linked securities (ILS) sits at around 1.5% of its assets, so could be roughly CHF 315 million, or US $340 million.
But its target allocation has always been a little higher, at 2% and now, under a new investment strategy the City of Zurich Pension Fund is lifting the target ILS allocation amount to 4% of its portfolio....
....MUCH MORE
