Schroders ILS CEO
Lohmann mulls new
$500m reinsurer as
alt cap needs evolve
INDUSTRY VETERAN DIRK LOHMANN,
who now heads the insurance-linked securities
(ILS) business of global asset management
group Schroders, is exploring the possibility
of launching a new reinsurer on Bermuda
with a minimum of $500 million in capital.
Lohmann said that ILS investors are becoming
increasingly sophisticated and are open to
investing in new ILS asset classes for longer
durations. The investment firm is exploring
launching a rated reinsurer which takes the needs
of some investors to a logical conclusion.
“We are looking at the possibility of
creating something with permanent capital
structure and a rated balance sheet which
would allow us to manage a portfolio of risk
in a way that allows for all the various risk
Pool Re seeks more reinsurers to back its retro programme
POOL RE, THE UK’S STATE-BACKED
terrorism reinsurer, wants to increase the
number of reinsurers willing to participate on its
retrocessional placements—and the number of
investors willing to support its ILS programme—
as it cannot buy as much capacity as it would like.
Julian Enoizi, chief executive of Pool Re,
told Monte Carlo Today that since launching its
first retrocessional reinsurance programme
four years ago, Pool Re has been on a process
of educating the market about the risk. It now
works with around 50 reinsurers, but would
like to buy more protection than is available.
“We have increased the capacity on the
programme every year since we launched it
four years ago, but it remains a continual
education process where we must explain to
people what the perils involve and how the
risk models have evolved over time,” he said.
“It is still viewed as a difficult peril. We are
buying 100 percent of the capacity available
every year and we would like to buy more.”
Pool Re bought £2.3 billion of capacity
in its last renewal, in March, an increase
of £500 million from the £1.8 billion
it bought when the programme was
launched in 2015. (continued on page 4) >>
Shape the future
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appetites of the investors we work with,” he
told Monte Carlo Today.
“It depends on an investor’s objectives.
Some do not want to be investing in an
operating business, but they like the returns.
For others, this might be a natural evolution
into the industry.”
Lohmann’s ILS unit has been called
Schroder Secquaero since the former acquired
100 percent of Lohmann’s Secquaero business
in July this year. He said that Schroders
has “deep” relationships with a number
of sovereign funds, several of which have
invested in the reinsurance space previously.
“It is a question of looking at clients’
objectives and considering what we can
deliver,” he said.
SEPTEMBER 10 2019
One possibility is that Schroders would
play a central role in forming, managing and
building a new reinsurer which would, over
time, take on a life of its own with key functions
moving in-house. (continued on top of page 4) >>