Catastrophe bond fund news

Third-party investor capital under management in reinsurance joint-ventures and insurance-linked securities (ILS) funds managed by RenaissanceRe’s Capital Partners division reached almost $7 billion at the start of 2024, with the firm’s catastrophe bond fund strategy driving the largest share of the last year’s growth.

During the fourth quarter of 2023, the majority of tranches of cat bond notes closed above their initial target size, resulting in an average increase of 27% for the period, according to Artemis’ data.

Investment manager Amundi US has celebrated the one year anniversary of its newest dedicated mutual insurance-linked securities (ILS) fund strategy, the Pioneer Cat Bond Fund, saying that the strategy has now surpassed $150 million of assets and delivered a 1-year return of over 14.9%.

Catastrophe bond funds were a bright spot in the alternative UCITS investment fund space in 2023, as cat bond funds expanded strongly at a time when the wider UCITS segment experienced approximately $38 billion in outflows, according to Kepler Absolute Hedge.

LGT ILS Partners, the specialist dedicated insurance-linked securities (ILS) investment unit of the private bank and asset manager LGT Capital Partners, is anticipating a flow of additional investors for one of its more recent fund launches, an Article 8 catastrophe bond fund offering for Australian institutions.

A record breaking year for the catastrophe bond and related insurance-linked securities (ILS) market and continued momentum in early 2024 is having a positive influence on the wider ILS market, according to Brad Adderley, Bermuda Managing Partner, Appleby.

The insurance-linked securities (ILS) market is expected to remain supportive of investors in 2024, according to Twelve Capital’s Head of Investment Solutions Vittorio Sangiorgio.

Catastrophe bond funds in the UCITS format experienced significant growth in assets under management in the final quarter of 2023, growing by 10.5% that period, to end the year with almost $11 billion of assets across this group of cat bond funds.

Twelve Capital, the Zurich headquartered insurance-linked securities (ILS) and reinsurance investment manager, is forecasting “a longer-lasting heightened pricing environment”, or so-called hard insurance market cycle, with discipline one factor that can help sustain this.

The Ambassador mutual catastrophe bond fund strategy has continued to grow in the latest quarter of record, adding close to $30 million in assets in the period to October 31st 2023, to reach $127.7 million in net assets under management.