Swiss Re to co-manage GAM’s cat bond & ILS fund range

Swiss Re Insurance-Linked Investment Advisors Corporation (SRILIAC), a subsidiary of Swiss Re, a global reinsurer, is set to become a co-investment manager for GAM’s insurance-linked securities (ILS) fund range, including the GAM Star Cat Bond UCITS Fund starting May 7th, 2025. As of March 31st, 2025, Swiss Re oversees approximately $5 billion in ILS assets spread across funds, sidecars, and tailored structures. From May onwards, the firm will also partake in the co-management of GAM’s ILS funds amounting to around $3 billion in assets under management (AUM).

With this new role, Swiss Re assumes responsibility for investment decisions and portfolio management, while GAM retains oversight of risk management, leads global distribution efforts, and manages product structuring. The collaboration of the two companies intends to foster innovation within the ILS sector.

Since its inception in the 1990s, Swiss Re has been a significant player in the catastrophe bond market, actively sponsoring cat bonds and sidecars. Via its platform Swiss Re Capital Markets, the company has facilitated cat bond transactions valued at approximately $50 billion.

Investors in GAM’s cat bond and ILS funds are poised to benefit from Swiss Re’s profound risk knowledge and underwriting expertise, bolstered by a team of over 50 catastrophe risk specialists, more than 190 unique peril models, and a trove of approximately 200 terabytes of curated portfolio data.

SRILIAC, a wholly-owned subsidiary of Swiss Re and a registered investment adviser with the Securities and Exchange Commission (SEC), will jointly manage the funds. Spearheaded by CEO and CIO Mariagiovanna Guatteri, SRILIAC will oversee the management of the GAM ILS funds in this new capacity.

Guatteri expressed enthusiasm for industry developments, noting the record-setting year the ILS market experienced in 2024, underscoring the appeal and diversification attributes of cat bonds for investors. The partnership between Swiss Re and GAM comes at a time of heightened interest from cat bond issuers and investors alike.

Christopher Minter, Head of Swiss Re Alternative Capital Partners, echoed the sentiment of enthusiasm, expressing the company’s pleasure in collaborating with GAM to manage their cat bond and ILS investment strategies. Minter looks forward to leveraging Swiss Re’s unparalleled risk acumen and extensive experience in the cat bond industry to cater to investors’ needs effectively.