Ambassador mutual fund surpasses $700m in cat bond and ILW assets

The Ambassador catastrophe bond focused US mutual fund strategy operated by Embassy Asset Management has grown its total insurance-linked securities (ILS) assets under management to more than US $700 million or the first time, while the strategy delivered an 11.61% return for the last year of record.

Continued steady growth in assets has been reported for the latest quarter of record, which has continued beyond that to take the strategy to approximately $708 million in early January 2026, data seen by Artemis shows.

When we last reported on the Ambassador Fund, the investment manager’s had reported reaching over $559 million in total net assets as of October 31st 2025.

As we also explained at the time, since that quarterly reporting date the Ambassador Fund had expanded further, to reach $607.4 million in assets by the last week of September.

Now, the investment manager has provided its annual update as of October 31st 2025 and at that date the Ambassador Fund had grown its ILS assets to almost $627 million.

As of that reporting date, the fund remained largely invested in catastrophe bonds, but with private industry-loss warranty (ILW) type collateralized reinsurance deals under the Consulate Re structure also making up a meaningful proportion of the strategy.

As of the October 31st annual reporting date, the Ambassador Fund’s catastrophe bond investments stood at just over $532.4 or nearly 85% of the portfolio, up from $468.3 million a quarter earlier.

Preferred note investments into industry-loss warranty (ILW) contracts under the Consulate Re structure increased in value to just over $88 million at the end of October, up slightly from the $80.6 million reported for July 31st.

The Ambassador Fund portfolio managers 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.

As of July 31st the fund held 16 Consulate Re positions, presumably all ILW investments, all of which were 2025 vintage issuances.

By October 31st the number of Consulate Re positions had not changed, but their valuations had increased by more than 9% in the last quarter.

Since the reported $627 million of assets as of October 31st the Ambassador Fund has continued to grow.

According to the latest net asset value for the start of 2026 seen by Artemis, the assets under management of the Ambassador cat bond fund has now reached $701 million.

Which represents roughly 75% growth over the course of 2025, having begun the year with around $400 million in assets.

Impressively, for the year to October 31st 2025 the Ambassador Fund delivered an 11.61% total return to investors in the strategy and its average annual return stood at 9.01% as of that date.

None of the Ambassador Fund’s holdings were impacted by any of the natural catastrophe losses that occurred in the year to October 31st 2025, while the average spread across its catastrophe bond holdings was running at approximately 7.5%, which the manager’s see as roughly inline with what they would expect over the long-term.