SCOR Investment Partners, the SCOR group’s portfolio management company, has agreed to acquire 100% of the capital of Coriolis Capital Limited, an asset manager specialising in insurance-linked securities (ILS).
Whilst SCOR has been active in the alternative capital space for 19 years, having issued its first catastrophe bond in 2000, the deal represents an opportunity for the reinsurer to expand its capacity in the ILS market.
Following the transaction, which is expected to be finalised in the second half of 2019, SCOR will have an aggregate sum of $2.1 billion of assets under management in ILS, operating in both Paris and London.
SCOR Investment Partners added that the combined ILS platform will enable it to provide investors with improved market access, additional expertise in financial engineering, and complementary fund infrastructure.
SCOR’s investment unit is also an experienced player in the ILS field, building diversified ILS portfolios exclusively exposure to natural catastrophe risk, representing 1.3 billion of assets under management.
“With this acquisition, SCOR is advancing its development in the field of alternative reinsurance in order to seize market opportunities and benefit from the institutionalization of ILS as an asset class,” said Denis Kessler, Chairman & Chief Executive Officer (CEO) of SCOR.
“The resulting ILS platform will reach a critical size,” he explained. “Alongside ILS origination with our SCOR Global P&C clients, in synergy with the underwriting teams, this will create new opportunities for our ILS management business, enabling it to move into the top tier of the market.”