UBS to Sell Former Credit Suisse Insurance-Linked Unit to Management
UBS announces sale of Credit Suisse Insurance Linked Strategies to its management team. The deal, part of UBS's integration efforts following the 2023 acquisition, is set to close later this year.
UBS has announced its decision to divest the Credit Suisse Insurance Linked Strategies Ltd (CSILS) to the unit's management team, led by Niklaus Hilti. This move comes as part of UBS's ongoing efforts to integrate Credit Suisse's operations following its acquisition in 2023.
The Swiss banking giant, founded in 1862, has been working on streamlining its newly expanded structure since the merger, which created one of the world's largest wealth management entities. This sale represents a significant step in that process, aligning with the common practice of large financial institutions divesting non-core assets during integration.
According to the announcement made on July 23, 2024, the transaction is expected to be finalized in the latter half of the year, subject to regulatory approvals. Upon completion, CSILS will operate as an independent entity under a new name, continuing to manage its funds and single investor fund mandates.
The insurance-linked securities market, where CSILS operates, has seen substantial growth in recent years, attracting increased interest from institutional investors. This sector specializes in financial instruments whose values are influenced by insured loss events, offering unique diversification opportunities for investors.
Niklaus Hilti, who will lead the management buyout, has been a prominent figure in this market for over two decades. His expertise and long-standing involvement in the field likely played a crucial role in UBS's decision to sell the unit to its management team.
While the financial terms of the deal remain undisclosed, both UBS and the CSILS team have committed to ensuring a smooth transition for investors. This approach aligns with the Swiss financial market's reputation for stability and strict regulatory oversight.
"UBS and the CSILS team will work together to ensure a smooth and successful transition for investors"
[[UBS statement]]
The sale of CSILS reflects the ongoing changes in the Swiss banking landscape following the merger of two of its most prominent institutions. As UBS continues to navigate the complexities of integrating Credit Suisse, which was founded in 1856, the financial sector watches closely for further strategic moves and their potential impact on the global financial markets.
