Hiscox Capital Partners, the division of Hiscox Re that encompasses insurance-linked securities (ILS) investments and quota-share partnerships, has won a US $1 billion mandate from giant Australian investor TCorp, which is the sovereign investment manager for the New South Wales (NSW) public sector, according to a report.
“We see this as a strategic opportunity to partner with a highly regarded insurer with a strong track record in insurance underwriting,” Murray told the publisher.
He also explained that exposure to reinsurance assets is an important diversifier within the TCorp portfolio, delivering returns that are consistent with its clients objectives.
As an investor, TCorp has around $118 billion of assets under management.
Recall that Hiscox Capital Partners recently reported a meaningful increase in its ILS assets under management, which rose from $1.5 billion at January 1st 2026, to a new high of $2.4 billion at April 1st this year.
We can’t confirm whether the TCorp allocation is the main driver of that increase, of which it was said a meaningful proportion had flowed to the Hiscox Capital Partners catastrophe bond fund strategy, although it feels safe to assume it might be.
Large Australian investors, including superannuation funds and sovereign wealth investors, are increasingly attracted to insurance and reinsurance linked investments, with allocations from the country to the ILS sector having risen in recent years.
We understand from our sources that the US $1 billion mandate is set to be allocated across both catastrophe bonds and certain private ILS arrangements.
That will allow TCorp to shape its exposure to the ILS and reinsurance asset class across market cycles, providing greater optionality to take advantage of market conditions and any dislocations, while also enabling broader diversification as well.
Given cat bonds have greater liquidity and private ILS can incorporate structural leverage, the mix of ILS asset types can also be beneficial to large allocators as they optimise for returns across the cycle.
TCorp has historically always been one of the largest allocators to alternative investments in Australia, while it also embraced the total portfolio approach quite early on.
Its sophistication as an allocator is clearly evidenced by its ability to make a large investment in the insurance-linked securities market, as it adds another potentially meaningful source of diversification to its portfolio.
Hiscox Capital Partners is just one of the specialist managers of catastrophe bond and ILS funds listed in our Insurance Linked Securities (ILS) Investment Managers & Funds Directory.
