Details below on an important deal for Flood Re;
Aberdeen Investments’ Strategic Insurance Group has been appointed by Flood Re, the UK’s government‑backed flood reinsurance scheme, to manage a c. £1 billion credit mandate following a competitive public procurement process.
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.
Matthew Smith, Global Head of the Strategic Insurance Group at Aberdeen Investments, said:
“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.
“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.”
The mandate will be led by Dan McKernan, Head of Fixed Income Insurance Solutions at Aberdeen Investments, who brings more than 35 years’ experience managing insurance portfolios.
He will be supported by Aberdeen’s wider Strategic Insurance Group, which provides integrated investment management and insurance advisory services tailored to the specific needs of insurers and reinsurers.
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.
Flood Re manages more than £1 billion in assets and operates within a highly regulated framework. Aberdeen Investments’ appointment reflects its deep experience in managing insurance assets within strict regulatory, liquidity and capital constraints, as well as its ability to deliver detailed reporting, asset‑liability alignment and operational resilience.
The partnership will be an ongoing, long‑term relationship, with both organisations working closely together on portfolio construction, risk management and governance, and with investment teams collaborating directly as an extension of Flood Re’s own capabilities.
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.”
Flood Re was launched in 2016 and is regulated by the Prudential Regulation Authority and the Financial Conduct Authority. It operates through a public‑private partnership between the UK government and the insurance industry, enabling insurers to transfer the flood element of household policies at a subsidised rate, funded in part by an industry‑wide levy.
The appointment of Aberdeen Investments reflects a strong alignment between the two organisations, including a shared focus on prudence, transparency and long‑term stewardship.
Aberdeen’s systematic and methodical approach to fixed income investing, combined with its insurance‑specific expertise, was a key differentiator in the selection process.
About Aberdeen Investments’ Strategic Insurance Group
Aberdeen Investments’ Strategic Insurance Group is a dedicated global team focused exclusively on serving insurance companies and reinsurers. Formed in October 2025, the group brings together Aberdeen’s investment, actuarial, regulatory and insurance‑specific expertise into a single, fully integrated centre of excellence.
With over a century of experience managing assets for insurance clients, Aberdeen Investments today manages more than £207 billion on behalf of over 150 insurers worldwide. The Strategic Insurance Group supports clients with balance‑sheet‑aware investment solutions, integrated portfolio management and high‑touch client service, responding to growing demand for deeper and more strategic asset management partnerships across global insurance markets.
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