Schroders Capital’s Private Debt & Credit Alternatives (PDCA) team, together with a leading global reinsurance company, Hannover Re, today unveils the integration of an innovative tokenised capability into its insurance-linked securities (ILS) investment platform. This milestone includes the execution of the first real-world collateralised reinsurance transaction through this platform.
This innovation has the potential to become the basis for a significant part of the future of the approximately $130 billion ILS market, by modernising how collateralised reinsurance is structured, administered and accessed. Through tokenisation, this new development digitises the control and flow of the assets held within the reinsurance agreement, while optimising the yield through money market exposure.
Smart contracts are used to revolutionise the traditional manual, paper-based and intermediated process through automation. This in turn provides more accessibility and transparency for all parties involved, allowing Schroders’ flagship ILS investment funds to gain exposure to a digital form of the reinsurance agreement.
This represents the next generation of our landmark proof of concept launched in 2024, also with Hannover Re, in which an ILS instrument was successfully tokenised and structured using a smart contract, trialled by Schroders employees on an internal-only basis. The pilot was recognised as the Best Decentralized Finance (DeFi) Initiative at The Digital Banker’s Digital Assets Awards 2024.
The tokenised model unveiled today delivers significant operational efficiencies for all participants with faster transactions and settlements, via secure and transparent infrastructure.
The launch of this new tokenised ILS capability is the next phase of Schroders’ commitment to innovating investment solutions for the benefit of the firm’s clients. It also forms the latest meaningful advance in Schroders’ digital asset strategy, which is part of its broader commitment to investment innovation.
Schroders is an active member of industry working group Guardian, which aims to bring industry and regulators together on digital asset standards for commercial scale. The firm also launched its Global Digital Assets Centre of Excellence in Singapore last July.
Flavio Matter, Head of Insurance Linked Securities, Schroders Capital, said:
“Tokenising reinsurance contracts is a key step to streamlining the ILS market and enhancing its operational efficiency.
“This launch builds on our successful tokenised ILS pilot and will introduce greater transparency, liquidity and scalability to this part of the reinsurance market. With further projects to come in the digitisation space, this also indicates our clear commitment to harnessing the latest innovations to enhance investment solutions for our clients.”
Dirk Heuer, Director Group Protection, Hannover Re, said:
“This tokenised transaction provided a valuable opportunity to deepen our understanding of blockchain technology and its application within the reinsurance and retrocession markets. Supported by robust governance frameworks and embedded compliance mechanisms, the deal demonstrated that the associated regulatory and operational risks are comparable to those encountered in traditional market transactions.
“Although blockchain remains an emerging technology, we expect increasing appetite for blockchain-enabled structures. This transaction therefore represents an important step in positioning us to evolve our approach and build knowledge and capabilities to be prepared for upcoming opportunities in the reinsurance and retrocession industry.”
This tokenised ILS capability will be available through a number of Schroders Capital’s core ILS strategies.
This capability is a considerable technical, legal and regulatory innovation, resulting from a long-term collaboration between Schroders Capital, HannoverRe, and i.AM Innovation Lab who also all contributed to the launch of the 2024 tokenised ILS pilot.
This capability was also enabled by additional expert input from regulated digital asset platform Archax, who acted as broker and provided the tokenisation and custody needed to facilitate digital access to the yield from the Schroders money market fund.
For further information, please contact:
David Parton, PR Manager | +44 7929 097023 | david.parton@Schroders.com |
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Schroders Capital
Schroders Capital provides investors with access to a broad range of private market investment opportunities, portfolio building blocks and customised private market strategies. Its team focuses on delivering best-in-class, risk-adjusted returns and executing investments through a combination of direct investment capabilities and broader solutions in all private market asset classes, through comingled funds and customised private market mandates.
The team aims to achieve sustainable returns through a rigorous approach and in alignment with a culture characterised by performance, collaboration and integrity.
With $111.8 billion (£83.1 billion; €95.2 billion)* assets under management, Schroders Capital offers a diversified range of investment strategies, including real estate, private equity, secondaries, venture capital, infrastructure, securitised products and asset-based finance, private debt, insurance-linked securities and BlueOrchard (Impact Specialists).
*Assets under management as at 31 December 2025 (including non-fee earning dry powder and in-house cross holdings)
Schroders plc
Schroders is a global investment manager which provides active asset management, wealth management and investment solutions, with £823.7 billion (€943.4 billion; $1107.9 billion) of assets under management at 31 December 2025. As a UK listed FTSE100 company, Schroders has a market capitalisation of circa £6.5 billion and over 5,400 employees across 38 locations. Established in 1804, Schroders remains true to its roots as a family-founded business. The Principal Shareholder Group continues to be a significant shareholder, holding approximately 44% of the issued share capital.
Schroders' success can be attributed to its diversified business model, spanning different asset classes, client types and geographies. The company offers innovative products and solutions through four core business divisions: Public Markets, Solutions, Wealth Management, and Schroders Capital, which focuses on private markets, including private equity, renewable infrastructure investing, private debt & credit alternatives, and real estate.
Schroders aims to provide excellent investment performance to clients through active management. This means directing capital towards resilient businesses with sustainable business models, consistently with the investment goals of its clients. Schroders serves a diverse client base that includes pension schemes, insurance companies, sovereign wealth funds, endowments, foundations, high net worth individuals, family offices, as well as end clients through partnerships with distributors, financial advisers, and online platforms.
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Hannover Re one of the world's leading reinsurers. We transact all lines of property & casualty and life & health reinsurance and are present worldwide with around 4,000 staff. Property and casualty reinsurance in Germany is written by the subsidiary E+S Rück. Established in 1966, Hannover Re is recognised as a reliable partner for innovative risk solutions, exceptional customer intimacy and financial soundness. The rating agencies most relevant to the insurance industry have awarded both Hannover Re and E+S Rück very good financial strength ratings: Standard & Poor’s AA- "Very Strong" and A.M. Best A+ "Superior".