Leadenhall Capital Partners grows ILS assets to $4.2 billion

Specialist insurance and reinsurance linked investment manager Leadenhall Capital Partners has grown its ILS assets under management to a new high at $4.2 billion, a considerable 20% increase from the end of last year.

As of the 1st June Leadenhall reports that it has added $800 million over the last six months, resulting in a 20% increase from the $3.5 billion we reported for the end of 2016.

The ILS manager cites an “increased appetite from clients globally following the key 1st June renewals of non-life collateralised insurance linked investments” as helping to stimulate the growth in assets managed.

Leadenhall CEO Luca Albertini commented on the news; “We carefully plan each renewal date endeavouring to grow our business in an orderly and disciplined way. We lined-up investors for opportunities available in this renewal period to meet the growing combined reach of Leadenhall and of our partners at MS Amlin.

“Growth in both our non-life and life businesses reflects an increased appetite among existing and new investors attracted by the asset class and our differentiated approach to portfolio construction. We also turned down significant additional investment requests which came too late to be invested in opportunities of sufficient quality at the June and July renewals.”

Lorenzo Volpi, Leadenhall’s Head of Business Development, added; “We see sustained interest in the asset class with a combination of existing participants increasing their investment and major institutions from new geographical areas such as Korea, using our funds to gain exposure to the attractive, diversifying returns available from the ILS market.”

As ever, it’s vital for ILS fund managers to match inflows carefully with the opportunities available to underwrite and deploy capacity into the reinsurance market.

Leadenhall’s steady growth has now helped it to increase its size, which results in greater relevance with large counterparties and can provide enhanced access to risk in the future.

The ILS manager is also actively working to secure premiums from the future development of the re/insurance industry, as highlighted by the recent news that Leadenhall is backing what is being termed an “insurance challenger” InsurTech focused start-up.

Initiatives such as this will help ILS managers like Leadenhall continue to grow and increase their relevance, while providing efficient access to risk, to generate returns for their investor base.

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