Cazenove buy sees Schroders up interest in reinsurance-linked investments

Recently, independent asset management group Schroders plc acquired another asset management firm Cazenove Capital Holdings Limited. The acquisition completed in July and with it Schroders expanded its interest in reinsurance-linked investments, which it began feeding with a 30% buy into an ILS manager in April this year.

Back in April Schroders acquired a 30% stake in Swiss based insurance-linked securities and reinsurance investment manager Secquaero Advisors Limited. That saw Schroders gain the ability to offer ILS and reinsurance-linked investments to its institutional clients for the first time while Secquaero got the backing of one of the largest asset management groups in Europe.

Now, with Schroders acquisition of Cazenove Capital now completed, the firm has also gained a significant allocation to the CATCo Reinsurance Opportunities Fund Limited, the listed reinsurance-linked investment fund operated by CATCo Investment Management.

In a London Stock Exchange filing it is revealed that Schroder plc has now taken on the voting rights associated with Cazenove Capital’s holding in the CATCo Reinsurance Opportunities Fund. According to the filing, Schroders, through its ownership of Cazenove Capital, now has 50,403,335 shares in CATCo’s fund, equating to 13.628% of indirect voting rights (correct as at the 13th August).

Schroders, through Cazenove, has significantly expanded its holdings in reinsurance-linked investments after its acquisition of the firm and as a result taking ownership of its assets. It’s a further sign of the continuing increase in attractiveness of reinsurance as an asset class among these, more mainstream, kinds of asset management firms.