Leadenhall Capital Partners have announced that they are to launch two $50m insurance linked security investment funds and both will be based in Dublin, Ireland. Through the funds Leadenhall are aiming to provide investors with access to returns from the insurance and reinsurance markets through investments in catastrophe bonds, CAT swaps and other insurance-linked investments.
The ‘Leadenhall Value Insurance Linked Investment Fund Plc’ will be a non-life only fund aimed at high risk and high return business, so based on the riskier catastrophe linked bonds out there we assume. The ‘Leadenhall Diversified Insurance Linked Investment Fund Plc’ will (as the name says) be diversified with 80% non-life (in a wide range of territories and perils) and 20% life insurance securitisation (but not longevity).
Leadenhall say the funds are onshore for European investors as they are listed on the Irish Stock Exchange. Ireland was chosen as domicile as it has a robust regulatory environment and because investors will look favorably at onshore investments with the changing regulatory environment under the proposed EU Directive for Alternative Managers.