Peak Reinsurance Company (Peak Re) has agreed to snap up 100% of the capital of ILS asset manager Lutece Holdings and its subsidiary Lutece Investment Management for an undisclosed sum.

Peak Re expects to expand its ILS product suite through the latest deal.

Bermuda-based Lutece was founded in 2017 by industry veterans Erik Manning and Angus Ayliffe.

The firm is said to have a very specific and targeted retro strategy.

Following the acquisition, Lutece will lay out a platform for Peak Re to expand its business into other areas of the ILS market.

Lutece Investment Management will become a fully owned unit of Peak Re upon deal completion and will adopt the brand Peak Capital.

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Peak Re CEO Franz Josef Hahn said: “The acquisition of Lutece carries Peak Re forward in its aspirations in ILS by bringing Lutece’s expertise in house. This will definitely be accretive to our capabilities in capital and third party capital management.

“We see opportunities from growing Asian risk exposures – Lutece’s professionals with ILS and structuring expertise, combined with Peak Re’s strong underwriting and operating franchise, will create new avenues for us to innovate for both customers and investors, working towards our ambition of narrowing the protection gap in Asia.”

The deal awaits regulatory nod, with completion anticipated in the coming weeks.

In 2018, Peak Re introduced Lion Rock Re that is said to be the first reinsurance sidecar transaction in Asia. Following investor support, it was upsized last year.

Lutece CEO Erik Manning said: “We are delighted to become a part of Peak Re and look forward to bringing our assets and areas of expertise to help strengthen Peak Re’s platform.

“Peak Re’s analytical-underwriting model is very much in keeping with the culture of Lutece, and with that foundation we are looking forward to helping to expand Peak Re’s ILS footprint.”