Schroders expands ILS offering with the launch of Schroder Life ILS
Schroders announces the launch of Schroder Life ILS. The specialist fund will invest in Life insurance-Linked Securities (ILS) and offer investors high diversification against traditional asset classes, with attractive risk-adjusted returns, at a time where there is a growing Life ILS market offering more opportunities.
The strategy will be run across several funds/mandates in closed-end vehicles with a 10- year maturity and launches with US$ 750 million of committed capital. The strategy has exposure to a range of life and health insurance risks, primarily relating to value of in-force (VIF) transactions, mortality, morbidity (health), and lapse risks.
Schroder Life ILS will be managed by Daniel Ineichen, Head of ILS at Schroder Investment Management (Switzerland) AG. Daniel and his team at the Schroders ILS Desk will be supported by Secquaero Advisors Ltd, Schroder’s exclusive advisor with respect to origination, structuring and transaction monitoring of ILS related investments.
Daniel Ineichen, Head of ILS Portfolio Management at Schroders said:
“These new life specific strategies offer our clients a new class of insurance linked investments that provide attractive risk-adjusted returns that are both diversifying to traditional asset classes and to other more common ILS investments such as catastrophe risk. The longer durations and amortizing nature of many transactions provide our clients with assets that are well suited for matching long-term liabilities, such as pension liabilities.”
Scott Mitchell, Head of the Life ILS team at Secquaero Advisors Ltd said:
“The additional capacity from investors, combined with a fund structure that caters for the illiquidity and duration profile of complex life ILS transactions, means that Schroders is ideally positioned to support our transaction partners on strategically important structured life trades. The launch is particularly timely in the context of the evolving regulatory environment, which is driving an ever-increasing focus from insurers and reinsurers on active management of their risks, capital and liquidity.”
Dirk Lohmann, Chairman and CEO of Secquaero Advisors Ltd, said:
“The launch of Schroders’ life ILS strategy represents a significant step in extending Schroders’ overall ILS offering. The ILS team has been active in the life insurance market since the launch of our first ILS fund in 2008, contributing to the ongoing success of Schroders’ blended ILS (life and non-life) strategies. The team has also been involved in some of the most innovative structured life transactions in recent years. Through our strong industry relationships and longstanding experience we believe we have great access to private VIF deals and are able to source and structure a large variety of them.”
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Secquaero Advisors Ltd
Secquaero Advisors is a Zurich-based specialist boutique with a primary focus on intermediation of (re)insurance risk to capital market investors. Secquaero Advisors acts as the exclusive investment advisor to Schroders on insurance linked investments. In 2013 Schroders acquired an equity stake in Secquaero and is today the majority shareholder in Secquaero Advisors Ltd.
*as at 30 September 2017