Cat bond fund news

Reflecting strong performance across the RenaissanceRe business and its platform of reinsurance joint-venture vehicles and insurance-linked securities (ILS) funds, the company has reported delivering a significant $450.2 million to third-party investors in the third-quarter, while the fee income it earned was up more than 27%.

Hiscox ILS, the dedicated insurance-linked securities (ILS) management arm of the global re/insurer, saw its ILS assets under management (AUM) recover back to $1.5 billion in the third-quarter of the year and the company is seeing growing interest from investors.

Jordan Strah has taken on the position of Portfolio Manager for the catastrophe bond funds and other insurance-linked securities (ILS) strategies at Franklin Templeton Investment Solutions.

Having continued to expand their assets under management in recent months, UCITS catastrophe bond funds as a group have now grown their share of the overall cat bond market to a new high, at 27% of risk capital supplied.

The overall yield of the catastrophe bond market rose as the market repriced positions in the wake of recent hurricane Milton, but like other market indices and the performance of cat bond funds themselves, the effect of the storm has been quickly overtaken by continued positive market momentum.

With catastrophe bond market returns remaining elevated, the cat bond market index calculated by Swiss Re Capital Markets rose again in the last week, regaining all of the decline seen from hurricane Milton and more, to now stand 0.25% higher than when that storm hit.

Catastrophe bond funds in the UCITS format grew strongly in recent months, adding approximately 7% in assets during the third-quarter of 2024 to take their combined assets under management to a new record high of almost $13.05 billion.

The Ambassador US mutual catastrophe bond fund strategy operated by advisor Embassy Asset Management has continued to attract inflows from investors through the Atlantic hurricane season, reaching more than $329 million in assets under management (AUM) this month.

Twelve Capital, the Zurich-headquartered insurance-linked securities (ILS), catastrophe bond and reinsurance investment manager, has reached a new milestone in terms of third-party assets under management, surpassing $4 billion for the very first time across its cat bond and ILS portfolios.

With another week of insights gathered on the potential for any losses from hurricane Milton, thanks to industry loss estimates and catastrophe bond pricing, the net asset values (NAVs) of US mutual investment funds that allocate to catastrophe bonds and other insurance-linked securities (ILS) were mostly marked up again at the end of last week.