Insurance Linked Investments

Stone Ridge Asset Management, the New York based alternative risk premia focused investment manager, appears to have taken the strongest action in terms of marking down its mutual catastrophe bond and insurance-linked securities (ILS) funds on potential exposure to the California wildfires, while most other strategies in the market have barely moved.

Elementum Advisors, LLC, the alternative investment manager that specialises in collateralized natural catastrophe event reinsurance investments, has unveiled a new strategy that enhances the firm’s higher-yield strategy complement.

Catastrophe bond funds in the UCITS format continued their strong growth through the end of last year, reaching a new high of just over $13.8 billion in cat bond assets under management, which represents very impressive 26% growth through 2024.

According to Thad Hall, Partner and Head of insurance-linked securities (ILS) Solutions at Augment Risk, the risk capital and reinsurance solutions broking firm, the ongoing growth trend with alternative capital is expected to continue throughout 2025, given the high returns for ILS relative to other assets.

Northern Reinsurance SPC, Ltd. (Northern Re), a collateralized reinsurance company with a focus on providing investors access to the returns of its long-tail casualty underwriting business, has announced the hiring of former Munich Re executive Amin Touahri as it looks to advance its casualty ILS strategy.

We are delighted to reveal the final wave of speakers for our upcoming catastrophe bond and insurance-linked securities (ILS) conference. Artemis ILS NYC 2025 is being held in New York on February 7th. Tickets are still available but selling fast, so please register soon to ensure you can join us at the event.

The Bermuda Stock Exchange (BSX) has maintained its position as the leading exchange in the world for the listing of insurance-linked securities (ILS) instruments in 2024, with roughly 92% of outstanding catastrophe bond issuance finding a home there as of the end of the year.

Insurance-linked securities (ILS) fund managers delivered another positive month of returns to their investors in November 2024, with the average return of the Eurekahedge ILS Advisers Index reaching 1.03% on the back of positive returns for each of the 26 ILS fund strategies it tracks.

2024 was another record issuance year for the catastrophe bond market and with total alternative reinsurance capital reaching new heights, the way insurance-linked securities (ILS) managers and investors matched appropriate risk returns was a notable success, according to Bill Dubinsky, Managing Director and CEO of Gallagher Securities.

High-demand for catastrophe bond investments has compressed risk spreads somewhat, resulting in the overall yield of the catastrophe bond market falling back into single digits at 9.94% by the end of December 2024, according to the latest data from Plenum Investments.