Kinesis Capital Management Limited
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Kinesis Capital Management Limited - snapshot
- ILS manager or company name: Kinesis Capital Management Limited
- Location (HQ / Domicile): Bermuda
- Date of launch: Jun 2013
- Assets under management *: $500 million+ (as of July 1st 2019)
- Website link: Kinesis Capital Management Limited website
Kinesis Capital Management Limited - Details
KCM was incorporated in June 2013, to focus on the management of third party capital on behalf of Lancashire, by leveraging Lancashire’s existing deep relationship network and underwriting strength in the property catastrophe and specialty lines.
It currently provides underwriting and other services via an underwriting services agreement with Kinesis Reinsurance I Limited (“Kinesis Re”), a special purpose insurer that underwrites multi-class reinsurance business on a fully-collateralized basis on its own balance sheet.
Third party investors subscribe for shares in Kinesis Holdings I Limited (“Kinesis Holdings” and together with Kinesis Re, “Kinesis”), the parent of Kinesis Re, which is a segregated account holding company. Its segregated accounts will be identified with particular segregated accounts of Kinesis Re writing the reinsurance contracts.
Team size and structure:
KCM currently has 3 dedicated full time employees (Darren Redhead, CEO; Mathieu Marsan, Senior Portfolio Manager & Actuary; and Saphia Charters, Controller – Finance & Operations), but also obtains services and support from the Lancashire Group, via a services provision agreement. The Lancashire Group has around 200 employees.
Number of strategies (how many funds, sidecars or strategies):
Offers private managed accounts?
Not at the moment, but the existing structure of Kinesis Holdings / Kinesis Re has the capability of writing special draws with single investors, which would be similar to having private managed accounts.
Other offices or locations:
KCM’s parent, Lancashire, has offices in London and Bermuda
Kinesis Re writes contracts at two periods each year and at other times when KCM determines there is an attractive reinsurance market opportunity.
Kinesis Re seeks to provide direct, long-term access to Lancashire’s underwriting expertise, through multi-class collateralized capacity, whilst providing returns uncorrelated to the broader equity and credit markets.
Assets under management development (year-end):
Kinesis Reinsurance I Limited
Kinesis Re is both a Segregated Account Company (“SAC”) and Special Purpose Insurer (“SPI”), while Kinesis Holdings is a SAC. Investors own preference shares of Kinesis Holdings, which are linked to the different reinsurance contracts written by Kinesis Re.
Focusing on multi-class fully collateralized reinsurance across different classes such as property catastrophe, aviation, marine, energy and terrorism, while leveraging Lancashire’s existing systems, data, relationships, infrastructure and processes.
~ USD $500m of limit as of July 2019.
Underlying asset types:
100% in multi-class collateralized reinsurance for now.
Targeting an expected return in the mid-teens, pre fees.
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*Note: Assets under management are prone to fluctuation so the figures here are either the best available or last submitted by included managers. There is an element, albeit small, of insurance debt within this combined AuM.The Artemis Insurance-Linked Securities Investment Managers & Funds Directory is copyright © Steve Evans Ltd. Reproduction or publication without permission is not permitted. Use of this information within a commercial product, or for profit, without a license is strictly prohibited. Contact us if you would like to use this content or to discuss licensing.
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