Swiss Re Insurance-Linked Fund Management

PCS - Emerging Risks, New Opportunities

Elementum raises $150m for higher-risk ILS strategy, AUM reaches $3.7bn


We’ve learned that Elementum Advisors, LLC, the insurance and reinsurance linked asset manager, has raised $150 million from investors for deployment to opportunities presented by market dislocation at the mid-year renewals.

elementum-advisors-logoAccording to sources, Elementum Advisors raised the $150 million in capital from two investors, with the capital allocated using two sub-funds to a strategy called the Elementum Opportunities Fund.

We’re told the investments are specifically targeted at higher risk investment strategies presented by the current hard reinsurance market environment, to be deployed solely into collateralized primary reinsurance contracts.

Elementum Advisors has been running a higher risk focused insurance-linked securities (ILS) fund strategy for a couple of years now, as the manager sought to capitalise on opportunities presented in the hardening reinsurance market.

The new investment allocations are destined for deployment into similar higher-risk opportunities, it appears, timed to allow Elementum to write more business on behalf of investors at the mid-year renewal season.

Florida is not the sole target, we’re told, although it is included in the strategy. The Elementum Opportunities strategy also deploys its capital to primary reinsurance on both a regional and nationwide basis in the US, while southeast wind is a particular area of focus.

The main thesis is said to be on accessing returns from areas of the reinsurance market where the dislocation has been greatest and so the capital need is clearest.

According to the latest data in our Insurance-Linked Securities Investment Managers & Funds Directory, Elementum Advisors assets under management reached roughly $3.7 billion this month.

As we reported earlier this year, in 2023 Elementum’s ILS funds have benefited from a further $100 million investment from stakeholder and key investor White Mountains.

We also reported that White Mountains CEO Manning Rountree explained on Elementum Advisors that “tailwinds” are now emerging for the ILS investment manager.

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