Aberdeen Investments’ Strategic Insurance Group has been appointed by Flood Re to manage a c.£1bn credit mandate.
Under the mandate, Aberdeen Investments will act as Flood Re’s sole external asset manager, responsible for managing its investment portfolio on a Solvency UK balance sheet basis.
The partnership will support the evolution of Flood Re’s investment framework as the organisation matures, while remaining aligned with its risk profile, regulatory requirements and public interest purpose.
Flood Re is a UK single peril reinsurer established to ensure the continued availability of affordable flood insurance for households at risk of flooding, while supporting a long term transition to risk reflective pricing. As an arm’s length body backed by Government, the appointment was conducted in line with public procurement rules.
“We are proud to have been selected as Flood Re’s sole investment management partner for what is a systemically important insurer, providing critical protection against a growing climate risk in the UK,” Matthew Smith, global head of the Strategic Insurance Group at Aberdeen Investments, said.
“Flood Re is a powerful example of the social purpose that insurance can deliver, enabling households in flood risk areas to access affordable cover while allowing the wider market to function effectively.
“We are delighted to support Flood Re with a highly focused, balance sheet aware investment approach and to work alongside its team as a long term partner.”
Aberdeen Investments will also support Flood Re with specialist sustainability expertise, reflecting the latter’s clear focus on climate risk, flood resilience and responsible investment aligned with its public mission.
Latinka Pilipovic, CFO at Flood Re, said: “We are delighted to be working with Aberdeen Investments as Flood Re’s sole external asset manager following a thorough public procurement process.
“As a regulated, government backed reinsurer, it is essential that our investment strategy is closely aligned with our strong public purpose role. Aberdeen Investments demonstrated a clear understanding of our requirements, alongside strong insurance specific capabilities.
“We look forward to working closely with Aberdeen Investments as we continue to strengthen our financial resilience and support households at risk of flooding.”
