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Dutch Pension fund vehicle raises $260mn

Dutch pension fund provider PGGM raised a further $260mn of securitised notes via its Leo Re vehicle just before Christmas, according to a Bermuda Stock Exchange (BSX) listing.

This was up 30 percent from the $200mn of notes the Leo Re vehicle issued just before the January renewals last year.

The Series 2018-1 Class A notes are due on 22 March 2022. Clarien BSX Services was recorded as the listing sponsor.

PGGM is one of the most significant institutions investing in the insurance-linked securities (ILS) asset class, allocating capital to independent ILS managers Nephila, Fermat, LGT and Elementum as well as several undisclosed reinsurer-backed managers.

PGGM previously confirmed to Trading Risk that the debt is owned by its client PFZW, a pension foundation for employees in the care and welfare sector.

This year, PFZW's full transparency list confirmed that Bermudian reinsurance vehicle Leo Re was managed by Munich Re as the ceding reinsurer.

The natural catastrophe mandate to Munich Re was listed at a size of $100mn-$250mn, in line with the $200mn size of the initial Leo Re vehicle.

It represented the first more direct ILS sidecar investment that PFZW and its adviser PGGM have made.

Munich Re's main sidecar is Eden Re II, for which it raised $83.7mn for just before Christmas.

Eden Re provided $360mn of retro support for Munich Re in 2017. Munich Re announced in March last year that it had expanded the investor base of its Eden Re II sidecar for 2017 following a 55 percent drop in operating profits in its reinsurance division.

Stone Ridge and Pioneer are among the sidecar's investors.

The reinsurer first set up an Eden Re vehicle in 2014 and ran two sidecars before dropping Eden Re I as it expanded Eden Re II.


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