Private banking and asset management specialists LGT Group and its ILS and reinsurance linked investment arm, LGT ILS Partners Ltd., has reached a new milestone in terms of ILS assets under management at $5.5 billion.
LGT has added an additional $300m to its overall ILS assets managed since the end of 2015, having reached $5.2 billion at the end of last year, taking its total assets, across the direct ILS investments managed through the LGT ILS Partners unti and fund-of-fund offerings of the LGT Group, to $5.5 billion at the end of January 2016.
LGT is the third largest manager of ILS and reinsurance linked assets, based on total insurance-linked assets managed, according to the Artemis Insurance-Linked Securities Investment Managers & Funds Directory. The Directory now features ILS fund and asset managers and units which have between them $62.45 billion of ILS assets.
LGT has grown its ILS assets steadily since it acquired the ILS management expertise of its unit from Clariden Leu. At the time of the acquisition, mid-2012, ILS assets totalled $2 billion. That figure rose to pass $3 billion a year later and then to $3.9 billion the following year.
Investing across the range of ILS assets, from catastrophe bonds, to collateralised reinsurance and private ILS transactions, LGT is becoming a mainstay of large reinsurance renewals, where it is able to put out significant line-sizes in order to secure attractive layers of risk suitable for its range of funds.
Size, in terms of assets is important to ILS fund managers, particularly when it comes to how they get to participate at the key reinsurance renewals.
As ILS asset managers gain scale they increase in relevance to cedents, enabling them to benefit from larger shares of reinsurance programs, greater visibility of the risks available in the market and terms equivalent with the leading capacity providers.