Catastrophe bond fund news

Fermat Capital Management has launched a new strategy specifically for investors in New Zealand, with the Fermat Cat Bond PIE Fund becoming the first cat bond fund structured in the tax efficient Portfolio Investment Entities format.

As the insurance-linked securities (ILS) and catastrophe bond markets continue to embrace artificial intelligence (AI), the technology has the potential to help expand the market into new sectors like data centre risks, according to Ethan Powell, Principal and CIO of Brookmont Capital Management.

Seasonal tightening of catastrophe bond spreads accelerated in the month of July 2026, resulting in the catastrophe bond market yield or coupon available to investors declining to 9.29% by the end of the month, according to the latest data on cat bond yields from Plenum Investments.

Catastrophe bond fund strategies in the UCITS format saw performance accelerate through recent weeks as seasonality boosted returns, but the 12-month rolling return average across the Plenum CAT Bond UCITS Fund Indices has now declined to just under 10% for the first time this year.

The GAM Swiss Re Cat Bond UCITS Fund has expanded its assets under management (AUM) meaningfully over recent months, reaching $2.03 billion as of August 4th, 2026, while GAM’s underlying performance fee income has sharply increased to CHF 6.0 million.

Hiscox Re, the reinsurance operation and third-party capital platform of Hiscox Ltd, continues to utilise its Capital Partners division to gain further relevance in the market, and deploy more underwriting capabilities, according to Hiscox Group Chief Underwriting Officer (CUO), Joanne Musselle.

Catastrophe bond funds in the UCITS format have now added more than $1.84 billion of assets through 2026 so far, with the sector surpassing the $21 billion milestone for the first time this month.

RenaissanceRe’s third-party capital and insurance-linked securities management unit Capital Partners generated just over $83 million of fee income for the company in the second-quarter of 2026, while the reinsurer exhibited disciplined cycle management by underwriting fewer premiums and buying more retrocession in the period.

The Ambassador US mutual fund strategy operated by Embassy Asset Management that allocates to catastrophe bonds and private insurance-linked securities (ILS) that we believe to be largely ILW’s, has grown its assets under management further to reach almost $900 million as of this week.

Swisscanto Asset Management International S.A. has launched its first UCITS catastrophe bond fund under Luxembourg Law, the Swisscanto (LU) Bond Fund Cat Bonds, debuting with just over US $25 million in assets under management (AUM).