Catastrophe bond fund news

Catastrophe bond and related insurance-linked securities (ILS) market activity was more muted in the third-quarter of 2024, but the $573 million of new risk capital issued still helped the market reach $13.2 billion after the first nine-months of the year, Artemis’ brand new quarterly cat bond market report details.

After posting record levels of issuance so far in 2024, the catastrophe bond market appears poised to offer an attractive entry point for investors, according to Jack Burdick, an Associate at investment manager Neuberger Berman.

The total-return of the outstanding catastrophe bond market for 2024 through the end of August has now hit double-digits at 10.07%, according to data from the Swiss Re Cat Bond Performance Indices, which means while cat bond market performance is running behind the prior year, returns remain historically elevated.

The DaVinci Re joint-venture sidecar-like but equity-backed structure stands-out for the strongest growth in third-party capital among the vehicles managed by RenaissanceRe’s Capital Partners division, which had $7.15 billion in third-party investor assets under management at the mid-way point of 2024.

The seasonality effects of the peak of the US hurricane season approaching accelerated a decline in the overall yield of the catastrophe bond market in August, although it still ended the month at a very favourable 12.52%.

The insurance-linked securities (ILS) industry has come together to respond to the European Securities & Markets Authority (ESMA) call for evidence to support a review of the Undertakings for Collective Investment in Transferable Securities (UCITS) Eligible Assets Directive (EAD), highlighting the reasons catastrophe bonds are beneficial assets for investors and suitable assets for UCITS strategies.

Catastrophe bond fund returns spiked in August 2024 delivering the best monthly performance of the year for many, as seasonal spread tightening delivered strong performance across the market, with the Plenum CAT Bond UCITS Fund Indices averaging a 2.15% return for just slightly over the month.

Solidum Partners AG, a Swiss independent investment manager focused exclusively on catastrophe bonds and insurance-linked securities (ILS), has appointed former Vontobel Asset Management board member Dr. Ulrich Behm as a Partner with responsibility for sales and marketing for the company and its investment strategies.

Analysis from global consultancy Bain & Company suggests that institutional investors will increase their allocation to alternative asset classes by a 10% CAGR from 2022 to 2032, to reach at least $60 trillion.

Leadenhall Capital Partners LLP, the London-headquartered specialist insurance-linked securities (ILS) and reinsurance linked investment manager, has launched a new catastrophe bond fund targeting investors in Australia and New Zealand, working in partnership with Bennelong Funds Management.