{"id":625,"date":"2025-06-30T08:00:58","date_gmt":"2025-06-30T08:00:58","guid":{"rendered":"http:\/\/www.atsnorfolk.com\/?p=625"},"modified":"2025-07-02T14:15:00","modified_gmt":"2025-07-02T14:15:00","slug":"pggm-pfzw-ils-portfolio-gross-return-for-2024-was-25-2-unhedged","status":"publish","type":"post","link":"http:\/\/www.atsnorfolk.com\/index.php\/2025\/06\/30\/pggm-pfzw-ils-portfolio-gross-return-for-2024-was-25-2-unhedged\/","title":{"rendered":"PGGM \/ PFZW ILS portfolio gross return for 2024 was 25.2% unhedged"},"content":{"rendered":"

This content is copyright to www.artemis.bm<\/a> and should not appear anywhere else, or an infringement has occurred.<\/p>\n

We’ve reported before that the giant insurance-linked securities (ILS) portfolio managed by PGGM, the Dutch pension fund investment manager, on behalf of its end-client Dutch pension PFZW, had delivered a 15.1% net of costs return for calendar year 2024, on a Euro hedged basis.
\n<\/span>
\n\"pggm-pfzw-pension-investors-ils\"That was impressive enough, for a significant ILS investment portfolio that amounted to roughly US $8.7 billion in valuation terms at the end of last year<\/a>, spanning numerous allocations to catastrophe bonds, private ILS, quota share sidecars and collateralized reinsurance, as well as the earnings generated by a sponsored rated reinsurer balance-sheet.<\/p>\n

The PGGM ILS investment team, on behalf of PFZW, has spent years building-out a range of allocations and structures that allow the pension investor to efficiently access the returns of the reinsurance market, at the risk-return levels it desires and with the additional benefits of globally diversified exposures incorporated as drivers of returns.<\/p>\n

As we reported in an article recently, the PGGM ILS allocation portfolio constructed on behalf of PFZW features 14 investments, across a wide range of structures and reinsurance partnerships<\/a>.<\/p>\n

This gives the investor optionality through the market-cycle, access to diversifying regions and perils, aligned partnerships, focused ILS fund manager strategies and self-managed private ILS account optionality, as well as the broad access to business and leverage that the Vermeer Re rated balance-sheet provides.<\/p>\n

But now, in the latest annual report from the Netherlands based pension PFZW the raw performance-potential of the giant ILS and reinsurance investment portfolio has become clearer.<\/p>\n

PFZW’s latest report for 2024 states that the gross return of the ILS and reinsurance investments amounted to an impressive 25.2%, before hedging and other costs were taken into account.<\/p>\n

The cost of the ILS allocation is reported at just 0.5%, both on a hedged and unhedged basis, meaning the unhedged net return of the ILS portfolio came in at 24.7% for calendar year 2024.<\/p>\n

Just as impressive is the fact the PFZW ILS and reinsurance investment portfolio outperformed its benchmark by 6.9% in 2024, both on the hedged and unhedged basis.<\/p>\n

Which helps to drive home the value the Netherlands based pension fund derives from its investments into the ILS and reinsurance market.<\/p>\n

While also serving to make clear the return-potential of a large and diversified ILS portfolio that has numerous access points to the reinsurance market through a variety of structures.<\/p>\n

PGGM remains the largest single investor listed in our directory of pension funds and sovereign wealth funds investing in ILS and reinsurance<\/a><\/strong>.<\/p>\n

PGGM \/ PFZW ILS portfolio gross return for 2024 was 25.2% unhedged<\/a> was published by: www.Artemis.bm<\/a>
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This content is copyright to www.artemis.bm and should not appear anywhere else, or an infringement has occurred. We’ve reported before that the giant insurance-linked securities […]<\/p>\n","protected":false},"author":1,"featured_media":603,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13],"tags":[],"class_list":["post-625","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-reinsurance-renewals"],"_links":{"self":[{"href":"http:\/\/www.atsnorfolk.com\/index.php\/wp-json\/wp\/v2\/posts\/625","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/www.atsnorfolk.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.atsnorfolk.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.atsnorfolk.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/www.atsnorfolk.com\/index.php\/wp-json\/wp\/v2\/comments?post=625"}],"version-history":[{"count":2,"href":"http:\/\/www.atsnorfolk.com\/index.php\/wp-json\/wp\/v2\/posts\/625\/revisions"}],"predecessor-version":[{"id":627,"href":"http:\/\/www.atsnorfolk.com\/index.php\/wp-json\/wp\/v2\/posts\/625\/revisions\/627"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/www.atsnorfolk.com\/index.php\/wp-json\/wp\/v2\/media\/603"}],"wp:attachment":[{"href":"http:\/\/www.atsnorfolk.com\/index.php\/wp-json\/wp\/v2\/media?parent=625"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.atsnorfolk.com\/index.php\/wp-json\/wp\/v2\/categories?post=625"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.atsnorfolk.com\/index.php\/wp-json\/wp\/v2\/tags?post=625"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}