LGT Group, the Liechtenstein-based private bank, is taking over the Insurance-Linked Investments business of Swiss bank Clariden Leu for an undisclosed sum, it said today. The deal is subject to regulatory and legal approval and expected to close in the second quarter of this year.

The purchase includes a team of team specialists and the following fund structures:

Clariden Leu (CH) Cat Bond Fund; Clariden Leu (Lie) Cat Bond Fund; Clariden Leu (Lux) – Cat Bond Fund; Clariden Leu (Gue) ILS Plus Fund, with around SFr2 billion (around $2.18 billion) in assets.

“This acquisition allows us to further strengthen our market position as a provider of focused investment solutions in asset management,” said HSH Prince Max of Liechtenstein, chief executive of LGT Group.

His colleague, Torsten de Santos, CEO of LGT Capital Management, added: “As a long-standing investor in the insurance-linked asset class, and especially within the Clariden Leu funds, we are convinced of the quality of the team, their consistent investment strategy and the disciplined investment style.”

With this acquisition, LGT Capital Management will increase its assets under management to over SFr22 billion, up from SFr20 billion as logged at 30 June last year. In total, the whole LGT Group had managed assets of SFr88.1 billion on 30 June last year.