Asset management group Schroders is taking its first step into the insurance-linked securities and reinsurance-linked investments space after acquiring 30% of Switzerland based ILS and reinsurance investment manager Secquaero Advisors Limited. Schroders will now be able to offer ILS to its institutional investment clients for the first time and Secquaero get the backing of one of the largest investment managers in Europe.
The acquisition is testament to the growing profile of insurance-linked securities among asset managers around the globe and could trigger interest in other ILS specialists from large investment management groups. Deals such as this show the maturing nature of the ILS market as it becomes more accepted by mainstream investment houses and their clients and are positive for the market as a whole.
Dirk Lohmann, CEO of Secquaero, commented on the acquisition; ‘We are excited about this long-term partnership with Schroders which we believe will benefit both existing and future clients. We are confident that the complimentary skills of the two organizations will result in our becoming one of the leading managers in the Insurance Linked Securities sector.’
Stephen Mills, Head of Switzerland at Schroders said; ‘Insurance Linked Securities is an exciting and growing investment category offering attractive risk-adjusted returns, while at the same time genuinely diversifying the portfolio. We are delighted to be able to offer this new asset class to our institutional clients.’
Philippe Lespinard, Chief Investment Officer, Fixed Income added; ‘Secquaero has an experienced team of insurance specialists and a competitive track record and we look forward to welcoming them to Schroders’ Fixed Income team. Secquaero and Schroders share a common goal to build our presence in this asset class.’
As at 31 March this year, Secquaero managed insurance-linked assets worth approximately US$280 million.