Specialist insurance-linked securities (ILS) and reinsurance investment manager Leadenhall Capital Partners LLP has increased its ILS assets by approximately 12% in the first-quarter of 2016, reaching $2.7 billion under management.
In the quarter Leadenhall, which is an independently managed joint-venture with London and global insurance and reinsurance firm MS Amlin, saw growth across each of its ILS fund strategies, reflecting continued interest in the ILS asset class from investors.
During the quarter, Leadenhall saw its Leadenhall Value Insurance Linked Investments Fund grow by 3% to $647m, its Leadenhall Diversified Insurance Linked Investments Fund grow by 4% to $556m, its Leadenhall Life Insurance Linked Investments Fund grow by over 4% to $247m and its newest dedicated fund strategy, the catastrophe bond focused Leadenhall UCITS ILS Fund grow by over 33% to $106m.
The ILS manager also saw growth in private mandates from its investors as well, with the asset growth across the four funds and private mandates amounting to almost $300m during the quarter to take the total to $2.7 billion.
With the key mid-year June and July reinsurance renewals approaching fast, ILS managers like Leadenhall will be preparing for the opportunity to accept further inflows to help them meet market demand for capacity.
With the collateralised reinsurance product seemingly growing in popularity and gaining market share, as evidenced by the continued growth of ILS capital, sophisticated ILS investment managers may find they have ongoing growth opportunities over the rest of 2016.
For Leadenhall, the jont-venture with MS Amlin ensures it has access to areas of the reinsurance market that might otherwise prove more difficult to tap into, which could help to drive further growth.
Leadenhall Capital Partners LLP’s growth to $2.7 billion keeps it as one of the top-ten ILS managers, by assets under management, in our ILS fund managers directory which now includes firms looking after $63.54 billion of ILS assets.