Catastrophe bond fund news

Seasonal spread tightening effects accelerated in August 2025 driving the overall yield of the catastrophe bond market down approximately 0.60% in the month to 10.22%, as the insurance risk spread, or discount margin, compressed due to the hurricane season.

For the insurance-linked securities (ILS) asset management sector, operational capabilities are going to be key, while the transformative potential of artificial intelligence (AI) means it must be considered, Dr. Urs Ramseier, CEO of Twelve Securis told Artemis in an interview just before the Monte Carlo Rendez-vous event.

Euler ILS Partners, the specialist Swiss insurance-linked securities (ILS) investment manager, is continuing to build out analytical capabilities in the firm, with the latest hire being a new Analyst, Ivan Kleiner.

RenaissanceRe’s Capital Partners division saw its third-party investor capital under management surpass the $8 billion milestone for the first time ever, reaching $8.09 billion at June 30th 2025, which represents an increase of $940 million or 13% over the prior twelve months.

Driving home just how important the RenaissanceRe Capital Partners division has become to the global reinsurance firm, its CEO disclosed that the third-party and ILS capital management division has generated $700 million in fees for the business since the beginning of 2023.

Catastrophe bond funds in the UCITS format experienced their best month of 2025 so far in July, as seasonality kicked in and lifted the average performance for the Plenum CAT Bond UCITS Fund Indices to a 4.39% return year-to-date.

The overall yield of the catastrophe bond market has begun its seasonal decline over the last month as the typical hurricane season spread tightening regime set in, according to cat bond fund manager Plenum Investments.

The catastrophe bond market delivered a total return of 1.47% in July 2025, as seasonality kicked in and drove what we’re told was one of the best performances for that month of any year in the history of the benchmark Swiss Re Global Cat Bond Index.

Speaking during a second-quarter earnings call today, Kevin O’Donnell, CEO of Bermuda based underwriter and third-party reinsurance capital manager RenaissanceRe, said that he doesn’t see issues with capital wanting to enter the sector regardless of return.

Catastrophe bond funds structured in the UCITS format continued to rapidly expand through the second-quarter of 2025, with the sector as a whole having grown its combined cat bond assets under management by an impressive 24%, or over $3.31 billion, just since the end of last year.