Swiss Re Insurance-Linked Fund Management

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Leadenhall grows insurance-linked investments fund by $50m


Leadenhall Capital Partners has increased the size of its Leadenhall Value Insurance Linked Investments Fund by $50m to take advantage of the 1st June renewals and opportunities in the insurance-linked market. The fund invests in non-investment grade risk profile opportunities predominantly in the non-life insurance sector (P&C, motor, marine and more), including insurance-linked securities.

The additional $50m means that Leadenhall’s fund now includes amongst its investors insurance companies, private banking investors, fund of funds and pension funds.

According to Luca Albertini, CEO of Leadenhall Capital Partners, the fund used to have listed shares (on the Irish Stock Exchange), but they de-listed those last October and converted them to Class-C shares which were made available to new investors up to 1st April. Luca Albertini said; “We collected new subscriptions after April and channelled to the Fund at June 1st to take advantage of the renewal season and the opportunities available in the insurance linked market at the new pricing environment.” The $50m of new investment listed on the Irish Stock Exchange as Class A shares yesterday, 1st June.

The current market climate is resulting in fund-raising from many areas of the market, with recent sidecar launches and other funds increasing their capital and investor base at a time when opportunities may have seemed scarce to some. It’s testament to the growing maturity of these markets and insurance-linked asset classes that the demand has remained high despite recent events.

Luca Albertini explained; “We note that investors reaction to the recent catastrophes have been mainly a positive one, as they come into the sector having observed the behaviour of insurance linked portfolios after a series of very large events (so with a better knowledge of the risk profile of ILS portfolios as well as of the impact of a large event on specific investments, on their shares in a fund, on loss estimates, and on pricing), and as they are ready to pick the benefits of a better pricing environment.”

The general sentiment in the market is that investors in re/insurance-linked opportunities are becoming more sophisticated and are actively seeking out the diversification opportunities that these types of investments can offer their portfolio. As a result it seems that insurance-linked securities and catastrophe bonds could see significant demand from investors when the primary market deal flow picks up again.

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