The Florida Retirement System Pension Plan, which is administered by the Florida State Board of Administration, saw its allocation to insurance-linked securities funds and reinsurance strategies rising to make up 1% of total pension fund assets by the end of 2025, which equated to around $2.23 billion invested.
Those allocations are made on behalf of the giant Florida Retirement System Pension Plan, which reached total fund assets of over $222.5 billion by the end of 2025.
The ILS fund and reinsurance strategy investments began slowly, with only close to $100 million to begin, but steadily ramped up through the following years as the State Board of Administration of Florida selected a number of well-known ILS managers and started to diversify its ILS investments across different access points.
By 2023, the Florida Retirement System pension fund allocation to ILS investments reached the $1 billion dollar mark, with the State Board of Administration developing a plan to capitalise on higher rates and returns possible in a harder reinsurance market to as much as double it.
As we reported earlier this year, the Florida pensions ILS investments were nearing the $2 billion mark by the third-quarter of 2025, while the investor was targeting line-of business and structural diversification within the ILS allocation through introduction of specialty lines and quota share exposure.
The ILS investments had been hovering around the 0.8% to 0.9% of total pension fund assets, while the target was to reach 1%.
Now, as of the end of 2025, the Florida State pension plans ILS investments have reached that 1% of total fund asset level, which means they sat at around the $2.23 billion mark, in valuation terms, as of December 31st 2025.
Helping with that growth has been accumulating returns over recent years, with the insurance-related investments via ILS fund managers and other routes having delivered attractive performance, growing valuations. While new investments have also been made.
As we reported recently, the Florida State Board of Administration further diversified its insurance-linked securities allocations made on behalf of the Florida Retirement System Pension Planin the fourth-quarter of 2025, with $400 million allocated across a quota share reinsurance strategy managed by Tangency Capital and a specialty lines opportunity managed by Nephila Capital.
It’s not immediately clear if all of that $400 million is included in the December 31st 2025 insurance and ILS allocation size of around $2.23 billion. If not, then the true figure would be higher still by this stage, while it will also presumably have risen due to further gains made in recent months.
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