Insurance-linked security specialist fund manager Securis Investment Partners has put on hold its plans to list a new £200m ILS and cat bond fund on the London Stock Exchange.
It seems that timing has not been on Securis’ side as they have cited the market fallout from the Japanese earthquake and investors being more cautious than normal as the reasons for holding back the listing. Securis first announced the new, listed fund back in February as a way to get more capital and to grow the capacity of funds under its management.
Securis said in a statement that the current nervousness among investors in the equity markets, caused by the Japanese quake and resulting investor flight to safety, has hindered their search for capital. Investors are currently focused on safer, more vanilla investments.
We’re sure that Securis will be able to successfully launch this fund if they attempt it again in a few months. Once the final toll on the cat bond market from the Japanese quake is understood and pricing has had a chance to stabilise, it’s likely that investors will be more open to ILS investments again. Reuters reported that Securis had managed to raise £140m for the fund.