Our Strategy

Disciplined risk selection.
Flexible capital deployment.
Uncorrelated returns.

Pillar’s strategy is rooted in a single objective: to deliver attractive, risk-adjusted returns that are uncorrelated with the broader financial markets.

We do this by assuming carefully selected catastrophe risk across the global property reinsurance landscape — always with careful consideration for the volatility we underwrite.

Within property catastrophe reinsurance, we operate a multi-strategy platform that allows us to allocate capital across the full spectrum of the market, including:

  • Traditional reinsurance
  • Retrocession
  • Catastrophe bonds
  • Industry loss warranties (ILWs)
  • Structured opportunities with fronting leverage

Our flexibility across these instruments allows us to move capital where the risk-reward profile is most compelling,

without being tethered to any one structure or market segment. This adaptability is a defining strength, especially during periods of market dislocation.

Our strategy is designed not just to endure cycles, but to harness them.

Underwriting with Precision

At the heart of our investment process is a rigorous, technical underwriting framework.

Our team has developed proprietary tools — including the Pillar Risk Optimization System (PROS) — to evaluate risk beyond what third-party catastrophe models alone can capture. We enhance vendor models with more than 20 years of exposure and claims data, adjusting for litigation trends, geographic spread, building cost inflation, and structural deficiencies.

Generally, potential trades are assessed both on a standalone and marginal basis — considering its expected loss ratio, absolute return on collateral, and contribution to the portfolio’s overall risk profile. We prioritize quality of data and deal structure, focusing on counterparties with strong historical performance and transparency across submission materials.

Controlling the Downside

Preserving capital is central to our strategy. We actively hedge portfolios when margins tighten and maintain discipline when pricing deteriorates.

In 2024 alone, our team reviewed approximately 2,500 trade submissions and declined roughly 80% of them — a reflection of our selectivity and standards in a market that often rewards volume over vigilance.

We also deliberately diversify across geography, peril type, and time, seeking opportunities in both peak and non-peak zones across the U.S., Europe, Japan, Australia, and New Zealand. We often favor smaller, regional insurers that allow for cleaner data, more customized structuring, and less systemic exposure.

Built for Market Cycles

The property catastrophe market is cyclical by nature.

We maintain a long-term orientation and do not chase absolute returns at the expense of prudence. Instead, we focus on compounding value for our investors over time, balancing conviction with discipline in how and where we assume risk.

Managing Inflows with Intention

Our disciplined approach extends beyond underwriting — it applies equally to how we manage capital.

We do not accept inflows simply because they are available. If market conditions do not support attractive deployment opportunities, we will slow or limit new commitments. In our view, protecting investor capital begins with selectivity — not just in the risk we underwrite, but in the acceptance of capital we agree to deploy.