Schroders acquired 30% of Secquaero in 2013 and entered into a partnership to serve institutional clients’ growing interest for Insurance Linked Securities (ILS). From June of that year, Secquaero has acted as Schroders exclusive advisor on ILS investment strategies.
Since the start of the partnership, the Schroders investment team, supported by Secquaero, has grown into one of the leading providers of institutional investment solutions for ILS. In February 2016, Schroders increased its stake in Secquaero to 50.1%. Under full ownership, Secquaero will be fully integrated into the Schroders Private Assets unit. Managed by Dirk Lohmann and based in Zurich, the combined team managing ILS related strategies will operate within Schroder Investment Management (Switzerland) AG under the name Schroder Secquaero.
Andreas Markwalder, CEO Schroder Investment Management (Switzerland) AG said:
“The combination of Secquaero’s specialist knowledge in the re-insurance and securitization of insurance risks matched with the global reach of the Schroders’ asset management distribution platform led to the success of the partnership by providing a highly attractive offering to sophisticated investors seeking to invest in ILS strategies.”
Dirk Lohmann, Head of Schroder Secquaero said:
“ILS will continue to be a key contributor to Schroders Private Assets strategy. In a time where diversification and positive absolute returns are key, the investment case for ILS remains strong. Secquaero’s DNA along with its market footprint and long-standing expertise will be embedded within Schroders Private Assets.”
Schroders’ objective is to be one of the leading institutional providers of dedicated ILS investment strategies, offering a wide range of funds and bespoke mandates, from pure cat bond strategies to broader solutions including private transactions and dedicated life only funds. The ILS team, managing close to $3 billion assets as at the end of June 2019, consists of 25 professionals from leading (re-)insurers, actuarial consulting firms and investment managers with jointly over 250 years of relevant actuarial, modelling, underwriting and investment experience. On 20 June 2019, Schroders won “Manage of the Year” at the 2019 Trading Risk Awards in recognition for the strong operational processes within the Schroder Secquaero team and the performance of its ILS strategies.
Schroders long-standing presence in the private assets sector goes back over 160 years, with the company having helped finance the improvement of Cuba’s rail network in 1853 and the construction of Japan’s first railway between Tokyo and Yokohama.