Insurance-linked securities investment fund strategies, across catastrophe bonds and private ILS, experienced their strongest month of returns this year so far in June 2026, averaging a return of 0.83%, according to the ILS Advisers Fund Index.
June was the third month in a row this year where all ILS funds that have reported performance figures to this index so far were positive.
With 84% of constituent ILS fund returns now in, ILS Advisers reports the average across its index constituents was 0.83% for June, lifting the half-year performance for 2026 to 4.05%.
Notably, that is well-above the half-year performance of the ILS Advisers Index in 2025, which was just 2.05% across all the ILS strategies tracked after returns had been dented by the California wildfires and some other events earlier last year.
It’s also higher than the average half-year performance of this index since its inception in 2006, which now stands at around 2.42%.
No catastrophe events in June 2026 are thought likely to have caused any meaningful impact on the ILS market, ILS Advisers noted today.
At the same time, market activity remained strong, with significant new catastrophe bond issuance and the June and July reinsurance renewals feeding ILS funds with new opportunities to invest.
Pure catastrophe bond funds averaged a return of 0.81% for June, while the ILS funds that also invest in private positions, largely collateralized reinsurance and retrocession arrangements, averaged slightly higher at 0.86%.
The range of performance was again wide, demonstrating the diversity of strategies available to investors in the ILS market.
The lowest performing ILS fund gained 0.25% in June 2026, while the best performing gained 1.85%, ILS Advisers data shows.
Track the ILS Advisers Fund Index here on Artemis.
You can track the ILS Advisers Fund Index here on Artemis. It comprises an equally weighted index of 37 constituent insurance-linked investment funds which tracks their performance and is the first benchmark that allows a comparison between different insurance-linked securities fund managers in the ILS, reinsurance-linked and catastrophe bond investment space.
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