Swiss pension fund Nest grew its ILS allocation by 18.0% to CHF153.2mn ($169.6mn) as of 31 December 2024 from CHF129.6mn ($154.0mn) the year prior.
In US dollars, the ILS allocation increased by 10.0%.
The ILS allocation accounted for 3.5% of the fund’s total AuM as of 31 December 2024, up from 3.3% of its total AuM the year prior, in US dollar terms.
The pension fund’s total assets under management grew to $4.8bn in 2024 from $4.6bn in 2023.
Nest’s target ILS allocation for ILS as a percentage of total AuM is 3%, with a range of 1% to 5%.
ILS falls within the pension fund manager’s alternatives pot, which includes investments made to private equity and infrastructure and private debt.
Nest said: “Alternative investments continued the positive results of the previous years. ILS in particular can look back on an exceptionally good performance.”
In 2024, ILS delivered returns of more than 20% for Nest, while in 2023 the asset class returned around 5%, which Nest said was “possible because there were comparatively few major loss events”.
Nest listed Twelve Capital Swiss Re Insurance Linked Investment Management and Cambridge Associates as ILS managers.