Palmetto is managed by Nephila Capital, one of the world's biggest participants in the insurance-linked securities market.
It uses catastrophe bonds, industry loss warranties and reinsurance contracts to construct portfolios.
Ipac chief investment officer Jeff Rogers said the investment in Palmetto continued ipac's strategy of diversifying the economic drivers of return in its clients' portfolios.
"To be successful in this sector, you need expertise in risk management and the capacity to access a wide variety of insurance-linked exposures," Rogers said.
"Our research identified Nephila Capital as a strongly resourced manager well positioned to deliver a portfolio offering an attractive trade-off between return prospects and risk."
Nephila is based in Bermuda and is 25 per cent owned by Man Investments.
