Bermuda-headquartered, London-listed insurance and reinsurance group Hiscox has grown its insurance-linked securities (ILS) assets under management at Kiskadee Investment Managers, the firms ILS investment management subsidiary.
At the 1st January 2015 Kiskadee has lifted its ILS AuM to $400m. It’s a significant increase for the ILS and third-party reinsurance capital management unit, which previously reported its AuM as $100m.
In an announcement this morning, Hiscox said that the increase in AuM was due to new commitments from existing investors as well as strong inflows from new investors. Additionally, Kiskadee has also received firm commitments from investors for capital to be deployed at future renewals and for underwriting opportunities that may emerge between now and the summer 2015 reinsurance renewal season.
The two funds operated by Kiskadee are the actively managed open-ended Bermuda domiciled funds, the Kiskadee Diversified Fund Ltd and Kiskadee Select Fund Ltd. Hiscox believes that the two funds offer investors greater capital efficiency and improved market access, compared to traditional direct collateralised ILS funds due to their close alignment with Hiscox’s own underwriting.
With this structure, Hiscox feels that Kiskadee is able to create investible portfolios from a broad and more diverse universe of reinsurance and retrocession risks. Kiskadee also offers its investors single mandate funds and can create bespoke vehicles to offer institutional investors tailored access to portfolios of insurance and reinsurance as well as being able to support larger investment allocations.
Jeremy Pinchin, CEO of Hiscox Re, commented on the successful increase in assets under management; “Our Kiskadee funds combine superior risk selection with diversified market access provided by the Hiscox Group. We believe this is a truly distinctive offering and so are pleased at the enthusiastic response from new and existing investors. Hiscox has a long history of managing alternative forms of capital. Kiskadee is a natural continuation of working with like-minded, long-term partners and offering enhanced solutions to our reinsurance clients.”
See all the ILS managers, along with their AuM and further details, in Artemis’ Insurance-Linked Securities Investment Managers & Funds Directory.