LGT Capital Partners builds out Lumen Re and welcomes external equity investor

12 September 2022

LGT Capital Partners (LGT CP) welcomes external co-investor as part of the further build-out of Lumen Re and the confirmations of the roles of two senior managers in Bermuda.

Lumen Re serves as a cornerstone of LGT Capital Partners’ ILS investment activity, both as a dedicated property catastrophe reinsurance carrier, and as a fronter/service provider to the LGT CP ILS fund suite. The reinsurer was established by LGT Capital Partners’ specialist ILS team (LGT ILS Partners) in 2012 to facilitate the structuring of investments in ILS on behalf of ILS funds and mandates of LGT Capital Partners. In 2017, Lumen Re was upgraded to a fully regulated commercial reinsurance carrier.

LGT Capital Partners is pleased to announce that US-based investor The Kresge Foundation has become an external equity investor in reinsurer Lumen Re. Structured as a co-investment alongside the Princely Family of Liechtenstein acting as key equity investor, this direct equity investment in Lumen Re allows for the most efficient allocation to insurance-linked strategies (ILS) for any long-term investor. 

“After several years with increased catastrophe event activity, the ILS market has undergone a fundamental shift, with improved rates and conditions. We saw this as an attractive entry point for a long-term ILS allocation through a uniquely-structured investment in Lumen Re with LGT Capital Partners, a firm that we view as a high quality partner” stated Adrian Ohmer, Investment Director and Head of Diversifying Strategies of the Kresge Foundation.

Roberto Paganoni, CEO of LGT Capital Partners said: “We welcome The Kresge Foundation as a co-investor in Lumen Re and are excited to continue the build-out of Lumen Re’s balance sheet strength by leveraging our experience as a long-term investor in this asset class since 2005.”