UBS has announced that it has reached an agreement to sell the Credit Suisse Insurance Linked Strategies Ltd. business to its existing management team, led by Niklaus Hilti.

UBS Group AG has today signed the needed definitive agreement to sell its 100% holding in Credit Suisse Insurance Linked Strategies Ltd (CSILS) to the CSILS management team, in a transaction that is predicted to shut within the second-half of this yr, subject to regulatory approvals.

Once the transaction is closed, CSILS is about to operate independently from UBS under a latest name, while continuing to administer its ILS funds and single investor fund mandates.

UBS and the CSILS team are set to work together to make sure a smooth and successful transition for investors within the ILS strategies that it operates.

Niklaus Hilti, CEO of CSILS, commented on the news, “We’re incredibly enthusiastic about this strategic transaction for us which marks one other significant milestone within the journey of the CSILS team.

“It reinforces our commitment to our clients and marks a pivotal moment that permits us to construct on our strong foundation and deal with our mission and innovation, while maintaining the best standards of excellence in the whole lot we do.”

Barry Gill, Head of Investments, UBS Asset Management, also said, “CSILS has been a longtime platform within the insurance linked asset management industry with a track record stretching back 21 years. This management buy-out will ensure a high level of continuity for investors and we’re confident that Niklaus and team are well-positioned to take the business forward.”

The Credit Suisse ILS team has a protracted track-record available in the market and operates a spread of strategies, from a registered UCITS catastrophe bond fund, to closed-end or private fund versions, in addition to ILS fund strategies and mandates focused on collateralized and fronted reinsurance and retrocession arrangements.