Insurance-linked securities (ILS) focused independent asset managers, Twelve Capital and Securis Investment Partners, have announced their intention to merge, creating one of the world’s largest ILS managers with assets under management of $7.8 billion.
The announcement states that shareholders of both ILS investment managers remain fully invested in the combined business, with B-FLEXION, a long-term stakeholder in Securis, set to remain a supportive, committed partner to the company.
Securis was founded almost 20 years ago and is very prominent in the public and private ILS space. Twelve Capital was established nearly 15 years ago, and has a specialist focus on insurance investments with more than 14 years of experience in the catastrophe bond sector, a growing sub-segment of the ever-expanding ILS universe.
The new, combined entity will be led by Urs Ramseier, co-founder of Twelve Capital, who becomes Chief Executive Officer (CEO). Herbie Lloyd, Chief Investment Officer (CIO) of Securis, will become CIO Private ILS and Head of UK and Bermuda.
Twelve Capital co-founder Christoph Buerer will become President of the new ILS manager, and Etienne Schwartz will assume the role of CIO of Liquid Securities. The current CEO of Securis, Vegard Nilsen, will leave the business once the merger completes, which is expected in the fourth quarter of 2024, subject to customary regulatory approvals.
The pair state that the combination ensures continued alignment of interests as the deal preserves both independence and a client-centric approach. The combined entity stands to benefit from enhanced investment capabilities and market access, as well as an improved ability to invest in proprietary technology.
“We have always recognised Securis as an innovative and hugely respected business in the ILS market, and the combination of our two businesses presents an exciting opportunity to create a leading ILS franchise and one of the largest independent ILS asset managers globally. The coming together of our businesses will unlock significant innovation potential and enable a wider range of ILS solutions to be delivered to a truly global investor base, building on existing client coverage in North America, the UK and Europe, as well as Asia Pacific,” said Ramseier.
Lloyd added: “Our combined resources, global scale and continued independence, together with our complementary distribution networks, mean that we can bring enhanced investment expertise and a broader range of product solutions to our current and future clients.”
Group Managing Partner at B-FLEXION, Cyrus Jilla, commented: “As long-term backers of Securis’ business, we are excited to support this partnership. Our people and our combined client base will have access to additional complementary resources and expertise.
“Importantly, the new firm’s ongoing independence and ownership stability will ensure consistency and continuity in its client-centric investment approach. I also want to thank Vegard, whose contributions and stewardship of Securis have been pivotal in driving the business forward to this inflection point.”
“As the industry experiences further consolidation, we believe we are favourably positioned for growth and long-term success through scale that is genuinely global. The combined business will be in a position to deliver superior outcomes to investors,” concluded Buerer.
The combination of two prominent ILS managers is big news for the space, and by bringing together their talent, assets, infrastructure, and expertise, Twelve Capital and Securis will be looking to expand and strengthen capabilities in both private ILS and catastrophe bonds.
