Schroders Capital reports growth in ILS as AUM surpasses $5bn

Asset manager Schroders Capital has seen continued growth in its insurance-linked securities (ILS) business, announcing assets under management (AUM) of more than $5 billion across its range of vehicles.

With an ILS AUM of over $5 billion, Schroders Capital has grown its ILS business by around 14% from March 2023 when it stood at $4.4 billion across its strategies.

The company is active in the full spectrum of ILS instrument types and risk exposures, and states that it is now one of the largest managers of catastrophe bonds.

Schroders Capital manages its UCITS fund Schroder GAIA Cat Bond, its Luxembourg FCP Schroder IF Flexible Cat Bond fund, and also a recently launched vehicle providing access to investors in the U.S., which enables its offering to reach investor types around the globe.

The firm’s ILS team is comprised of 37 specialised investment professionals, and has a track record of almost 15 years in delivering strong performances.

In light of the continued growth of its ILS business, the company has promoted both Daniel Ineichen and Flavio Matter to Co-Heads of ILS, where they will continue to report to Stephan Ruoff, Co-Head of PDCA who has also been appointed as Chair of ILS and maintains oversight of the team.

“With investor concerns over inflation and having to navigate higher for longer rates, portfolio diversification is key. Investors are clearly seeing the benefits of adding less-correlated assets such as ILS in a portfolio context,” said Ruoff.

“Fundamental indicators suggest a continuation of attractive conditions for ILS investors. Yields as well as underlying risk premiums remain very attractive as demand for insurance risk transfer remains high. We are extremely pleased to have reached this milestone which is testament to the team and our track record. Congratulations to Daniel and Flavio who have been key in driving the success of our business,” he added.

As we reported earlier this week, Schroders GAIA UCITS catastrophe bond fund exceeded $3 billion in assets for the first-time this year.

View information on dedicated ILS fund managers, as well as reinsurers offering ILS style investment opportunities, in our Insurance-Linked Securities Investment Managers & Funds Directory.