MS&AD acquires 80 percent ownership of ILS manager Leadenhall from MS Amlin

Mitsui Sumitomo Insurance, a subsidiary of Japanese insurance group MS&AD, has acquired 80 percent of limited partnership equity in ILS fund manager Leadenhall Capital Partners (LCP)  from MS Amlin Corporate Services, a group company of MS Amlin.

Mitsui Sumitomo said the move is part of its strategy to strengthen its insurance-linked securities business, one of the primary segments of the financial services business, and asset management business.

Following the deal, the oversight of Leadenhall will be transferred from the company’s international business to the financial services business, which it claims has a strong business relationship with LCP.

It added that the company will work to realise synergies while maintaining the independence of LCP, and further expand the product lineup in its ILS business in Japan while also developing new products in the alternative risk transfer (ART) business.

In addition to this, the company has announced that it will merge Sumitomo Mitsui Asset Management Co with Daiwa SB Investments on April 1, 2019 to form a combined entity called Sumitomo Mitsui DS Asset Management Company.

"The asset management business is growing globally, and the management capabilities and services required by customers are becoming increasingly sophisticated. As an equity-method affiliate with 15 percent of voting rights, the company as a major shareholder will support initiatives aimed at enhancing profitability and maximizing synergies by strengthening investment and product development to support those," the company said in a statement.