Mitsui Sumitomo Insurance snaps up London-based ILS fund manager

Insurance-linked securities (ILS) fund manager Leadenhall Capital Partners LLP (LCP) is now majority owned by Japanese company Mitsui Sumitomo Insurance.

In line with efforts to boost its ILS business, the MS&AD Insurance Group subsidiary acquired 80% of limited partnership equity in the London-based firm from MS Amlin Corporate Services. The latter is part of Mitsui Sumitomo Insurance’s UK subsidiary MS Amlin Plc.

The remaining 20% is owned by individual partners, particularly eight members of management.

Meanwhile the majority acquisition means the fund manager will now be directly under Mitsui Sumitomo Insurance, whose ILS unit is among the primary segments of its financial services operations.

“Oversight of LCP will be transferred from the company’s international business to the financial services business, which has a strong business relationship with LCP,” it announced.

“The company will work to realise synergies while maintaining the independence of LCP and further strengthen ILS business going forward.”

LCP has about US$5.4 billion in assets under management as of December 2018.