LGT ILS Partners

The utilisation of a rated balance-sheet by an ILS fund manager can help “to smooth out” some elements for insurance-linked securities (ILS) investors, says Michael Stahel, Partner at LGT ILS Partners.

LGT ILS Partners, the specialist dedicated insurance-linked securities (ILS) investments unit of the private bank and asset manager, is considering ways to enable equity investments to be made into its rated Class 3A reinsurance underwriting vehicle Lumen Re.

Lumen Re Ltd., the rated, Bermuda domiciled Class 3A reinsurance underwriting vehicle of LGT ILS Partners, has been called out for exhibiting “significant innovation, while its capital adequacy is cited as being “strongest” by rating agency A.M. Best.

The formation of Lumen Re, LGT ILS Partners’ Bermuda-based Class 3A reinsurance underwriting vehicle, was driven by a number of factors and sees the ILS manager try to combine the best of both worlds.

Lumen Re Ltd., the Bermuda domiciled Class 3A reinsurance underwriting vehicle of LGT ILS, a unit of the investor LGT Group’s alternative asset manager LGT Capital Partners, has had its credit ratings affirmed and balance-sheet assessed as strongest by A.M. Best.

LGT ILS Partners, the insurance and reinsurance linked securities investments unit of the private bank and asset manager, has renamed its fully collateralised reinsurer to Lumen Re Ltd. and achieved an A.M. Best rating of ‘A’ for the vehicle.

In a recent interview with Artemis, Christian Bruns, Hilary Paul, Pascal Koller, and Michael Stahel, LGT ILS Partners Portfolio Managers, noted an expectation for continued ILS sector growth in the coming months as market dynamics suggest additional interest in the space is likely.