LGT Capital Partners has announced that US-based investor, The Kresge Foundation, has become an external equity investor in its reinsurer Lumen Re, in addition to the appointment of two senior managers in Bermuda.
Structured as a co-investment alongside the Princely Family of Liechtenstein, this direct equity investment in Lumen Re is set to allow the most efficient allocation to insurance-linked strategies (ILS) for any long-term investor.
Adrian Ohmer, Investment Director, and Head of Diversifying Strategies of the Kresge Foundation commented, “After several years with increased catastrophe event activity, the ILS market has undergone a fundamental shift, with improved rates and conditions.”
“We saw this as an attractive entry point for a long-term ILS allocation through a uniquely-structured investment in Lumen Re with LGT Capital Partners, a firm that we view as a high-quality partner.”
Roberto Paganoni, CEO of LGT Capital Partners, added, “We welcome The Kresge Foundation as a co-investor in Lumen Re and are excited to continue the build-out of Lumen Re’s balance sheet strength by leveraging our experience as a long-term investor in this asset class since 2005.”
As for the appointments, Lumen Re Bermuda will be joined by Klaus Sapelza as Chief Underwriting Officer and Mario Spescha as Chief Operations Officer.
Both of whom were formerly part of the ILS team at LGT Capital Partners in Switzerland.
Lumen Re was established by LGT Capital Partners’ specialist ILS team in 2012 to facilitate the structuring of investments in ILS on behalf of ILS funds and mandates of LGT Capital Partners. In 2017, Lumen Re was upgraded to a fully regulated commercial reinsurance carrier.
