ILS Advisers Fund Index

Across the insurance-linked securities (ILS) fund sector the month of May 2025 was a positive one, with the average across all private ILS and catastrophe bond funds tracked by the ILS Advisers Fund Index reaching a +0.79% return for the period.

The ILS Advisers Fund Index, which tracks the performance of the insurance-linked securities (ILS) fund sector, has turned positive for the year after April on the back of another strong month of private ILS fund returns.

March 2025 was a positive month for the insurance-linked securities (ILS) fund sector, with a strong 0.82% average return across the sector according to the ILS Advisers Fund Index.

The ILS Advisers Fund Index has reported a +0.17% return for February 2025, but the company has highlighted a second consecutive month where there was a broad dispersion between ILS fund returns and performance, as effects from losses due to the California wildfires continued to flow through the market.

With all the insurance-linked securities (ILS) funds tracked by the ILS Advisers Fund Index now having reported their returns for January 2025, it’s become clear that there was a significant performance gap for the month due to the California wildfire losses.

The ILS Advisers Fund Index has reported a -0.38% return for January 2025 on the back of the recent California wildfire losses. With 75% of ILS fund managers having reported returns for the period so far, the Index could fall further as additional data points from private ILS strategies are included.