ERS launches ILS unit with Securis, Twelve Capital hires in growth strategy

Specialist motor insurer ERS has launched a new dedicated insurance-linked securities (ILS) division to be led by executive hires from Securis Investment Partners and Twelve Capital. The move is a part of its strategy to scale existing and enter new divisions including property, reinsurance, marine, professional lines and specialty.

The integrated ILS offering will be developed and managed by new hires with deep experience, knowledge and strong global third-party capital connections - Neil Strong will serve as CEO ILS and Fergus Reynolds as CUO ILS, supported by Sandro Kriesch.

Strong and Reynolds were previously partners at Securis Investment Partners based in London and Kriesch is a founding partner at Twelve Capital in Zurich.

The company said that its ILS approach will see the launch of three complementary investment strategies - an open-ended mandate with a remit to invest across both public, private and non-life ILS, with semi-annual liquidity; a closed-ended, higher risk and higher target return fund; and a liquid cat bond fund.

The new proposition will be built on a single, legacy free, reinsurer aligned platform and benefits from origination from the wider ERS proposition.

Additionally, the insurer has also recruited a specialist senior team to lead the broader commercial insurance and reinsurance expansion alongside group CEO Peter Bilsby and group CFO Richard Hextall.

The new hires include Kevin Kelley as group board as non-exec chairman. David Morris will join as CUO, Steven Tebbutt as head of specialty, and Dan Callow as lead underwriter for political violence and war. All three executives come from Talbot Underwriting.

Additionally, Chris Wilkinson will join from Lancashire as head of specialty, and David Message as senior underwriter marine from StarStone. Hiscox executives Gary Lill and Phil Furlong will join ERS as head of professional lines and head of marine & energy, respectively.

Bilsby said: “I am delighted that Neil, Fergus and Sandro have joined the team to set up our ILS offering. A (re)insurer aligned ILS platform will give us the ability to offer cedents the full suite of risk transfer solutions and institutional ILS investors the best access to risk with the flexibility to invest across a range of ILS opportunities.”

Strong added: “Fergus, Sandro and I are excited to support the expansion and build out a compelling proposition. The current environment sees investor appetites returning for insurance linked returns. ILS investors are now focusing on quality as they move allegiances towards managers that can provide the access to business that they want, but with more liquidity.

Reynolds commented: “The lack of legacy issues will give us significant opportunities to provide solutions to cedants and attractive portfolios to institutional clients. Our ability to leverage the ERS platforms will allow us to offer portfolios to investors that reduce the risk and the impact of trapped capital that causes such a negative drag on investors’ returns. I’m thrilled to be joining the team and can’t wait to get started.”

Kriesch added: “There are relatively few (re)insurer aligned ILS platforms that offer much more than a simple sidecar strategy so this approach, which will have technology at its core, will enhance and streamline the interaction with investors and provide reporting transparency that is often missing in the market.”

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