ILS funds news, insurance linked securities or ILS fund news

The insurance-linked securities (ILS) fund sector finished 2025 on strong footing with December seeing the third-highest returns for that month on record, as both catastrophe bond funds and strategies allocating to private ILS finished the full-year with averaged double-digit returns, the ILS Advisers Fund Index shows.

Despite the softening of the reinsurance market seen at the January renewals, 2026 is still expected to be among the more profitable years in reinsurance, as still higher attachment points and improved portfolio quality will support returns, according to Euler ILS Partners, the Swiss specialist insurance-linked securities investment manager.

With global reinsurance firm Hannover Re now having licensed its new insurance-linked securities (ILS) operation Hannover Re Capital Partners (HCP) in Bermuda, the company has revealed that Bermuda P&C leader Michael Eberhardt takes on the CEO position while Head of ILS Patrick Horstmann is a Director of the new unit.

Leadenhall Capital Partners, the London headquartered specialist insurance linked securities (ILS) and reinsurance related investments manager, has experienced particularly strong inflows of new capital across all its ILS fund strategies, growing its assets under management (AUM) to $5.72 billion by the end of 2025.

Franklin Templeton Investment Solutions, the hedge fund-focused arm of the global asset manager, has moderated its stance on catastrophe bonds from ‘strongly overweight’ to ‘overweight’. Despite this shift, the manager maintains that the asset class remains attractive.

Both underwriting and capital discipline must be functions of the strategic playbook of the ILS industry, according to Aditya Dutt, President of Aeolus Capital Management, who says a key shift in insurance-linked securities is increasing care being taken to manage capital appropriately for investors.

Integral ILS Ltd., an independent alternative investment manager focused on natural catastrophe insurance and reinsurance investments, has experienced strong growth in assets under management over the last year, starting January 2026 with $3.5 billion in committed AUM.

Coming off a robust 2025, ILS investment manager Tangency Capital Ltd has expanded its AUM to $3.6 billion. However, while Co-Founder and CIO Michael Jedraszak remains cautious about maintaining the firm’s current growth trajectory amidst softening rates, he forecasts a steady flow of capital into the sector as long as the broader ILS space remains […]

Former Hiscox ILS executive Aaron García Ehrhardt has now confirmed his new role being as the Head of Capital & Underwriting at Hannover Re Capital Partners (HCP), the global reinsurance firm’s recently established Bermuda-based insurance-linked securities (ILS) platform.

The Florida Retirement System Pension Plan, which is administered by the Florida State Board of Administration, has benefited from very strong performance across its allocations to insurance-linked securities funds, with its assets invested in ILS now approaching $2 billion.