Insurance Linked Investments

Here’s a reminder to register for our live Catastrophe Bond and ILS Market Conditions at Mid-Year 2025 webinar that is being held on June 17th 2025, in which our industry expert speakers will discuss market conditions and provide thoughts on the ILS market outlook at the mid-point of the year.

In an announcement today GAM Investments (GAM) and Fermat Capital Management (Fermat) said that they have reached a mutual agreement that will see Fermat becoming the sole manager of the offshore GAM FCM Cat Bond Fund, with GAM to have no ongoing involvement in the strategy.

The GAM Star Cat Bond Fund strategy has experienced a meaningful outflow of investor capital we understand, with the UCITS fund’s assets under management declining by approximately 25%, or around US $650 million, just in the month of April 2025.

Specialist insurance-linked securities investment manager Twelve Securis has put in place a temporary restriction on new subscriptions to its flagship Twelve Cat Bond Fund, as the manager looks to manage flows as the strategy reaches a new record size.

RenaissanceRe, the Bermuda based reinsurance firm and third-party capital specialist, is anticipating that its assets under management (AUM) across its joint-ventures and ILS funds will be “stable to up” over the rest of 2025, while fee income should resume its typical run-rate over the coming quarters.

The insurance-linked securities (ILS) market is continuing to evolve beyond traditional catastrophe bonds, with growing issuance in cyber and parametric segments, reflecting efforts to close protection gaps and provide alternative risk transfer solutions, according to a new report from AM Best.

Hiscox CFO Paul Cooper said today there remains “healthy interest” in catastrophe bonds at higher layers of the reinsurance tower, but also noted that the effect of the California wildfires could weigh on ILS fund performance fee income in both the organisation’s H1’25 and FY’25 results.

Hiscox Group has reported that assets under management (AUM) at Hiscox ILS, the dedicated insurance-linked securities (ILS) management arm of the global re/insurer, dipped by $100 million to $1.3 billion in the first-quarter on the effects of the California wildfires.

Fund management revenues earned through the activities of its insurance-linked securities (ILS) investment management business Nephila Capital rose 33% for owner Markel in the first-quarter of 2025, with the company reporting they reached the highest level in at least three years for the period, at $25.5 million.

Listings of catastrophe bond notes on the Bermuda Stock Exchange (BSX) rose by almost 5% in notional limit terms over the first-quarter of 2025, to end the period at a new high of $47.53 billion.