Bermuda-based ILS Capital Management, Ltd, an investment management company that specialises in investing in collateralised reinsurance and insurance-linked securities (ILS), has announced it is expanding and adding a specialty reinsurance team.ILS Capital has hired former Ariel Re CUO, Brian Gulbransen to head up its specialty unit and William Mulcahy, also formerly of Ariel Re, as the company’s new chief actuary.Starting October 1, the company intends to begin investing in specialty reinsurance contracts. The company hopes to bring something new to institutional investors in reinsurance and catastrophe risk, by including specialty reinsurance investments within its flagship fund, The 1609 Fund.Don Kramer, chairman and CEO of ILS Capital Management, who also founded Ariel Re, says ILS Capital will be the among the first investment managers to make specialty reinsurance available to institutional investors.“Specialty reinsurance was a significant contributor to my previous companies’ success, and I believe it will be a key contributor to our portfolio’s returns,” Mr Kramer said. “I am excited to be able to offer specialty reinsurance to institutional investors and to work with Brian and William again. They are highly regarded insurance professionals that have a strong understanding of the specialty reinsurance market and I am pleased that they have decided to join us.”Mr Gulbransen will be the chief underwriter, specialty re and a member of the firm’s investment committee. He will be responsible for ILS Capital’s specialty reinsurance portfolio. Prior to joining ILS Capital, he served as chief underwriter of marine, energy and aerospace at Ariel Reinsurance Co. Ltd. Prior to joining Ariel Re, Mr Gulbransen was the chief underwriter of marine, energy and aerospace with White Mountains Underwriting Ltd. He also helped establish the Greenwich, Connecticut; Dublin, Ireland and Bermuda offices for White Mountains.Mr Mulcahy will serve as chief actuary and a member of the firm’s investment committee. Prior to joining ILS Capital, he was employed at Securis and, prior to that, was chief actuary at Ariel Re. Prior to joining Ariel Re, he was chief actuary of White Mountains Underwriting Ltd and LaSalle Re. He is a Fellow of the Institute of Actuaries.ILS Capital Management says subject to Bermuda immigration approval, Mr Gulbransen and Mr Mulcahy will be joining the firm effective July 1.