AlphaCat Managers
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The deal freed up capital held against deals written in 2019 and 2020. -
The year brought a degree of closure on the loss-hit years of 2017-2021, while the outlook remains changeable for ILS managers.
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Key names taking up senior roles at Validus include Sven Wehmeyer and Pablo Nunez.
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The ILS executive is departing the ILS platform following RenRe’s move to buy Validus Re for ~$3bn.
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The industry’s ability to draw new capital will hinge on the outcome of the Atlantic hurricane season.
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Removing any competitor is a positive for ILS peers in a competitive time for fundraising, but it is not clear how much of a boost this will give RenRe.
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RenRe will be taking control of ILS manager AlphaCat as part of its purchase of Validus Re.
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Reinsurer-owned ILS platforms were challenged to grow fee income in a tough year for nat cat losses and as cat market economics shifted.
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The ILS unit earned $5mn of fee income, down by $1mn year on year.
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Some firms have fared better than others in the competition to raise funds during the year.
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AIG’s Q3 net cat losses of $600mn included $450mn from Hurricane Ian.
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AlphaCat will lose a mandate worth a few hundred million dollars as part of a broader pivot on alternatives from the pension fund.
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The group-level cat impact to the combined ratio improved 0.3 points to 1.8.
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Third-party assets under management were up $100mn in Q1 at $3.6bn.
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AIG took losses of $28mn for the year from its holding in AlphaCat managed funds.
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The Dutch firm had given the AIG-owned platform a mandate that could range from EUR500mn to EUR1bn, covering US cat reinsurance.
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AIG has disclosed that AlphaCat’s AuM was $3.5bn as of 30 September, down by $300mn from the $3.8bn reported for Q1 2021, and 17% from $4.2bn a year ago.
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Brooks had been in his post for almost two years and joined AlphaCat in 2011.
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The portfolio manager had been with the firm since 2018, with incoming CUO Adam Szakmary expected to take up his responsibilities.
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Parent AIG’s cat losses remained elevated in line with the prior-year Covid-19-impacted quarter.
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The executive had previously worked on Montpelier’s Blue Capital before his four-year stint at Hiscox Re.
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Parent company AIG posted an underwriting loss for the period.
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Fee income stayed flat but AIG's share of AlphaCat investment results dropped.
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Nephila’s fall in AuM contributed to the trend of specialist firms shrinking, as reinsurer-backed assets were up modestly.
