Aberdeen Investments has secured a landmark appointment as sole external asset manager for Flood Re, the UK government-backed flood reinsurance scheme, winning the right to manage a circa £1 billion credit mandate following a competitive public procurement process.
The appointment is a significant milestone for Aberdeen Investments’ Strategic Insurance Group — a dedicated global team formed in October 2025 that brings together investment, actuarial, regulatory and insurance-specific expertise under one roof. The win demonstrates the unit’s rapid establishment as a credible force in insurance asset management, just months after its formation.
Under the mandate, Aberdeen Investments will manage Flood Re’s investment portfolio on a Solvency UK balance-sheet basis, acting as a long-term strategic partner as the organisation evolves its investment framework. Aberdeen will also provide specialist sustainability expertise aligned with Flood Re’s climate resilience mission.
Matthew Smith, Global Head of the Strategic Insurance Group, said the appointment reflects the social purpose that modern investment management can deliver: “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.”
The mandate will be led by Dan McKernan, Head of Fixed Income Insurance Solutions, who brings more than 35 years of experience managing insurance portfolios. It marks a further step in Aberdeen Investments’ broader ambition to deepen strategic partnerships with insurers — a segment in which it already manages more than £207 billion on behalf of over 150 insurers worldwide.
Flood Re Chief Financial Officer Latinka Pilipovic said Aberdeen demonstrated “a clear understanding of our requirements, alongside strong insurance-specific capabilities,” adding that alignment with Flood Re’s public purpose role was central to the selection.
The mandate underlines Aberdeen Investments’ growing reputation for balance-sheet-aware fixed income management within complex regulatory environments — capabilities that are increasingly in demand across global insurance markets.
