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Leadenhall Capital Partners, the London headquartered insurance and reinsurance linked securities fund manager, has grown its ILS assets under management significantly this year, rising 29% from $3.5 billion at the start of 2017 to now sit at $4.5 billion.
It’s impressive growth from the ILS and reinsurance investments manager and positions the firm and its funds well to take advantage of market conditions at the key January 2018 reinsurance renewals.
Leadenhall has been raising fresh capital from investors since the major catastrophe losses of the third and fourth quarters, adding $300 million in AuM since June 1st, a net increase following the hurricane losses which affected the ILS managers non-life portfolios.
The non-life component of Leadenhall’s AuM is roughly $2.7 billion, and the life insurance linked investment component of the AuM is more than $1.8bn, the company said.
Luca Albertini, CEO of Leadenhall, commented on the news, “We are implementing the plan for our non-life business growth which pre dated the loss events which affected the industry, but we have made adjustments to take advantage of new opportunities and the expected increase in returns for investments exposed to US perils.”
Importantly, Leadenhall is also managing its assets to ensure the can be deployed effectively at the renewals.
Albertini explained, “We are controlling the pace of funds inflow, which could have been significantly larger, to time it with the expected opportunities.”
Lorenzo Volpi, Leadenhall’s Head of Business Development, added, “We have been working closely with our existing investors, who fully understand the impact of the 2017 loss events on our portfolios.
“We are pleased that our investors have increased, reloaded or maintained their investments with us, whilst at the same time adding major new investors to our funds after having reopened for subscriptions in November.”
It’s worth noting that the $4.5 billion of AuM commanded by Leadenhall is as of December 1st and does not include subscriptions earmarked for 1st January deployments, which suggests the figure could rise in early 2018.