Flood Re appoints investment management partner

Flood Re has selected Aberdeen Investment’s strategic insurance group to manage its approximately £1bn portfolio of credit-based assets.

The agreement – which follows a recently completed public procurement process – will see Aberdeen Investments act as the reinsurer’s “sole external asset manager, responsible for managing its investment portfolio on a Solvency UK balance sheet basis”.

Flood Re said the partnership will support the evolution of its investment framework as it matures as an organisation, while “remaining aligned with its risk profile, regulatory requirements and public interest purpose”.

The mandate will be led by Dan McKernan, head of fixed income insurance solutions at Aberdeen Investments.

Financial resilience

Latinka Pilipovic, chief financial officer 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.”

Matthew Smith, global head of the strategic insurance group at Aberdeen Investments, added: “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.”