ILS funds news, insurance linked securities or ILS fund news

The team behind the Brookmont Catastrophic Bond ETF (ILS) says its strategy is built on deep diversification and a long-term aim to outperform the broader catastrophe bond market on a risk-adjusted basis.

During the first-quarter of 2025, the trend in the catastrophe bond market was one of issuances upsizing and pricing down thanks to elevated levels of investor demand and robust capital levels in the sector.

RenaissanceRe, the Bermuda based reinsurance company and third-party capital manager, has raised almost $462 million in new third-party capital across its range of joint-ventures and insurance-linked securities (ILS) funds in the first-quarter of 2025, but the California wildfires saw losses shared with investors and dented the firms fee income for the period.

Brookmont Capital Management, LLC is reportedly looking at options to bring its US listed catastrophe bond ETF to Europe, which would expand the universe of investors able to allocate to the firm’s cat bond strategy.

Euler ILS Partners, the specialist Swiss insurance-linked securities (ILS) investment manager, has hired experienced capital raising specialist Alexander Loosley to its Executive Board, as Head of Capital Formation and Strategic Initiatives.

Institutional investors are increasingly turning to catastrophe bonds and other insurance-linked securities (ILS) as a reliable source of yield, diversification, and macroeconomic resilience, according to Mariagiovanna Guatteri,  CEO of Swiss Re Insurance-Linked Investment Advisors Corporation (SRILIAC).

AP2, or Andra AP-fonden, a Swedish state pension fund that is one of the largest in Europe at SEK 459 billion under management, saw its insurance-linked securities (ILS) allocation rise in value to around US $1.1 billion by the end of 2024, with the ILS asset class exceeding its long-term return expectations last year.

Nephila Capital, the specialist insurance-linked securities (ILS) and reinsurance investment manager unit of Markel, has promoted Bermuda-based employee Mark Richardson to the position of Head of Underwriting.

The average return of UCITS catastrophe bond fund strategies was 1.38% for the first-quarter of 2025, according to the Plenum CAT Bond UCITS Fund Indices. But lower-risk cat bond funds led the way by averaging 1.50% for the period as a group, as they generally had less exposure to the California wildfire cat bond mark-downs.

The City of Zurich Pension Fund has continued to expand its activities as an investor in insurance-linked securities (ILS), growing the size of its investment to now in excess of US $1.15 billion, while adding new allocations to ILS managers Integral ILS and Tangency Capital in the last year.