A takeover of a Bermuda-based funds and insurance-linked securities firm could lead to a jobs boost in the sector.

The boom in insurance-linked securities (ILS) was a key factor in the acquisition of a Bermuda-based funds firm, a top executive from a hi-tech firm specialising in investment and financial software said.

And Dave Reid, head of London’s SS&C Technologies international business, which took over Bermuda funds and ILS managers Prime Management, said: “The acquisition of Prime provided SS&C the perfect opportunity to enter the Bermuda fund administration sector as the region’s financial services market looks to rebuild.”

Barry Mah, country head of Prime, which also has offices in Canada, hinted the move — which has already led to increased staffing — could mean more jobs in the future.

He said: “Key to the acquisition was the strategic plan to invest, grow and expand our presence in Bermuda.

“In previous acquisitions of administrators in this region, many have resulted in their local office shifting all of their work to other lower cost jurisdictions. SS&C GlobeOp plans to invest in the Bermuda-regulated jurisdiction.”

He added: “We have confidence in SS&C’s understanding of our service and market and have seen staffing levels increase since the acquisition to accommodate current and planned growth.”

Mr Mah said: “Our goal is to become the preeminent administrator in Bermuda, leveraging SS&C’s technology and expertise to deliver best-in-class service to our clients.

“It has increased opportunities for existing staff globally with enhanced training, resources and access to additional technology.

“The deal is very much about growth. SS&C now has the ability to win more mandates as a combined global leader in alternative fund administration.”

The pair were speaking in a special Bermuda report produced by London-based hedge funds publication HFMWeek.

Mr Reid said: “There are great synergies within the combined group that will enable us to add further value to our customers and prospects, while expanding our presence geographically.

“The acquisition positions SS&C as a leading administrator for ILS and funds which invest in them.”

He added: “The experience and knowledge of the Prime team in servicing the ILS asset managers, along with attention to customer service, is a strategic first for SS&C’s fund administration services.

“This includes a Bermuda-based regulated entity, fund administration and accounting services specific to ILS with light touch and quality investor governance and compliance services.

“ILS is here to stay and continues to gain market share from traditional reinsurance products.”

In the same Bermuda report, Scott Watson-Brown, head of financial services firm PwC’s asset management team, said: “Bermuda continues to lead the world in convergence strategies and I think it is just another example of how Bermuda can facilitate the latest alternative strategies.

“If hedge fund managers want to access a strategy that has a particular structure or need, then I think Bermuda has shown itself to be a leading jurisdiction for accommodating those different structural needs.

“ILS structures represent just one of the areas where Bermuda is particularly strong.

“Bermuda offers real flexibility with regard to the type of alternative structures that are available and how they can be used by asset managers.

“As ILS has become increasingly popular and mainstream within the industry, it won’t take long before a new trend in alternative structures emerges and Bermuda be at the forefront of any new developments.”