Top 10 ILS funds add $2bn in H1
Four of the top 10 specialist insurance-linked securities (ILS) managers kept their assets under management (AuM) stable in the first half of 2014, but the group of leading capital providers still added $2bn to its circa $38bn combined asset base.
The pace of new inflows slowed from almost $5bn in the second half of 2013, and $3.6bn in the first half of 2013, according to the latest exclusive bi-annual investor survey from sister publication Trading Risk.
Nephila, Credit Suisse Asset Management, Fermat Capital and Catco all reported stable AuM.
Securis experienced the largest relative growth during the period, jumping two places up the ranks to fifth position. It now has $2.87bn of AuM, up almost a quarter from $2.3bn six months ago.
Notably, the gap between the top 10 and other specialist ILS managers continued to narrow.
Switzerland-based manager Secquaero doubled its AuM to $1.4bn during the first half as it saw the distribution benefits of its tie-up with Schroders. Even after this growth, it remains poised just on the edge of the top 10 ranks.
Twelve Capital, formerly the 10th-largest, reported stable AuM of $1.03bn for its ILS strategies at the half-year, but it has now been edged out of the group by the newcomer Stone Ridge Asset Management.
Trading Risk has also revised its earlier estimate of Stone Ridge's asset base for January 2014 after disclosures of the firm's AuM became publicly available. These confirmed that it has been in the top 10 throughout 2014 after launching its funds as recently as February 2013.
Stone Ridge continued to report strong growth with a 22 percent increase in AuM in the first half, although the figures were taken from public disclosures as of 30 April.
Others that grew over the first half include LGT, which added $400mn to lift AuM by 11 percent to $3.9bn; Elementum Advisors, which expanded by 15 percent; and Aeolus and Leadenhall, which each reported an 8-9 percent uplift in AuM.
ILS Capital Management also reported $250mn of AuM as the Don Kramer-led company launched. Among reinsurer-backed fund managers, Scor Global Investments reported the largest growth as AuM rose from $150mn to $425mn.
AlphaCat added $100mn to reach $1.4bn, partly due to growth built up on the $580mn rated balance sheet of PaCRe.
RenaissanceRe's ILS fund Medici added $45mn while Arch Underwriters entered the list after it set up business to underwrite for the rated Watford Re balance sheet.