Ambassador mutual cat bond and ILW fund nears $900m in assets

The Ambassador US mutual fund strategy operated by Embassy Asset Management that allocates to catastrophe bonds and private insurance-linked securities (ILS) that we believe to be largely ILW’s, has grown its assets under management further to reach almost $900 million as of this week.

When we last reported on Embassy’s Ambassador mutual cat bond and ILS fund strategy back in January, it had grown its total net assets under management to a new high of just over US $700 million, while the strategy delivered an 11.61% return for the last year of record.

The Ambassador Fund has been growing steadily for Embassy Asset Management, further demonstrating the attraction mutual fund investors have to the catastrophe bond and related ILS investments.

The strategy had grown to $627 million by October 31st 2025, then expanded again to $733 million by January 31st this year.

Now, as of the latest official reporting at April 30th 2026, the Ambassador cat bond fund had expanded to almost $839 million, but has since grown its net assets further to approximately $893 million at the start of July.

It represents approximately 60% growth in net assets for this cat bond and ILW investment fund strategy over roughly one year, since July 2025.

As of the April 30th 2026 official reporting date, the Ambassador Fund continued to place the largest emphasis on catastrophe bond investments, but with private industry-loss warranty (ILW) type collateralized reinsurance deals under the Consulate Re structure growing their share of the fund slightly over the prior quarter.

As of the April 30th semi-annual reporting date, the Ambassador Fund’s catastrophe bond investments stood at just over $658.3 million, which was around 87% of the portfolio investments, up from $631 million a quarter earlier when cat bonds made up 90% of the assets invested in.

The preferred note investments into industry-loss warranty (ILW) contracts under the Consulate Re structure made by the fund, increased to their highest value yet at almost $107 million at the end of April 2026, up from the $75.2 million reported for January 31st.

The portfolio managers of the Ambassador Fund continue to use Consulate Re to augment the diversification of the fund and gain access to privately negotiated ILW contracts, to assist with portfolio construction and optimisation, likely also deriving some higher-return opportunities that way as well.

Of 16 Consulate Re positions held in the Ambassador Fund’s portfolio at April 30th this year, 14 of them are 2026 series issuances, showing that the managers have continued to execute on and allocate to new ILW’s this year.