News annover Re is seeking third party investors to partner with on its internal markets at
fund that invests in insurance-linked securities (ILS), Henning Ludolphs, managing director, retrocessions and the capital
Hannover Re, told Monte Carlo Today. Leine Investment, formed in 2012, has
about $100 million invested in ILS although the reinsurer has the capability to increase this to $150 million should it see the right opportunities. In making the fund available to third
party investors which would invest alongside Hannover Re, Ludolphs said the reinsurer will take fee income from managing the portfolio, although he stressed the reinsurer was in no rush to increase the size and scope of the fund. He explained that the ILS investment were
activities launched predominantly
because Hannover Re wants to be able to take advantage of ways other than reinsurance to assume risk and finds it helpful to be close to the ILS market on the investment side, in terms of seeing how other bonds price and perform in the market.
WEDNESDAY 16.09.15
Hannover Re seeks investors for ILS fund H
on collateralised He said that growth in ILS market has
slowed in recent months, partly because returns have dropped to the point that some investors are holding back from investing in the space. “Prices have dropped and investors seems
to have funds ready on the sidelines but are holding back because prices are not as good as they were,” Ludolphs said. “Transactions are still profitable but less so than in the past.” Ludolphs is also responsible
of Hannover Re’s business that acts as a transformer
reinsurance
whereby investors want to reinsure specific transactions or portfolios. “Investors want to act as reinsurers and we
act as a facilitator for that,” he said. “Some need a transformer in the middle of a transaction for regulatory reasons, others because ceding companies like a highly rated reinsurer to be involved. “Others need us for leverage or ease of
administration simply because only one trust account has to be negotiated
rather than Henning Ludolphs
Asta plots more hires to grow in MGA space A
sta Capital’s newly launched managing general
Underwriting
agent (MGA) platform, Asta Management
(AUM), has
appointed Sian Fisher as non-executive director of the board, in the first of what will be a series of hires.
Speaking to Monte Carlo Today, Julian
Tighe, CEO, and Simon Norton, director of underwriting at Asta, said that Fisher will help to guide AUM in order to innovate and raise the company’s profile within the MGA space. “Sian brings a wealth of experience. If she
is going to tell us what we’re doing right as well as what we’re doing wrong along the way, then great,” said Norton. Tighe added: “We don’t pretend that we know
things we don’t—and we don’t know the MGA space as well as we know the Lloyd’s space. “Sian is a founding member of
Julian Tighe the
Managing General Agents’ Association, who are trying to apply decent standards to the market and raise the profile of MGAs, so she’ll be a great asset to us.”
Tighe revealed that Fisher is the first of
more executives to be announced in the coming weeks, and said that building AUM is a natural step for the company.
8 | MONTE CARLO TODAY | DAY 4: Wednesday September 16 2015
many if transactions shall be entered into with different ceding companies.” n
for the part
“The core until now has been managing underwriting businesses, primarily focused on the Lloyd’s market, so it makes sense to do this in the MGA space,” he said. “MGAs are
becoming much more
important features of the London Market, and we’re looking to build out this business.” Tighe said that the company will look both within and away from the London Market. “We’re underweight in the UK and Europe
and there are some fantastic opportunities there—particularly in western Europe. The London players have been fairly lazy about that in the past,” he explained. Tighe added that the company sees itself
more as a managing general underwriter than an MGA, meaning that it is more risk carrier- focused and not just about the underwriter. He said
that the Financial Conduct
Authority had described Asta as ‘putting a kitemark on the MGA space’, and that so far, it had achieved great results with its first client, Pelican. n
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