ILS funds news, insurance linked securities or ILS fund news

Leadenhall Capital Partners LLP, the London-headquartered specialist insurance-linked securities (ILS) and reinsurance linked investment manager, has signed a new ILS fund distribution agreement with Bennelong Funds Management, part of the BFM Group.

The total-return of the outstanding catastrophe bond market in 2023 has now surpassed 16%, beating the previous record and staying on-track to deliver an investment return that might surpass 20% by year-end, which could, in future, be a challenging record to beat.

While there are many ways to generate alpha for your investors in the insurance-linked securities (ILS) sector, it remains critical to manage investor expectations and avoid delivering unwanted surprises, speakers at Convergence 2023 in Bermuda said last week.

Speaking at the Convergence 2023 event in Bermuda yesterday, John Seo, Co-Founder & Managing Director at Fermat Capital Management, explained that there is significant investor interest in insurance-linked securities (ILS) right now, but when it comes to allocating, capital is slower moving these days.

At the Convergence 2023 conference in Bermuda today, speakers from insurance-linked securities (ILS) managers explained that the market remains smaller than is really desired and there is a need to continue efforts to make it more scalable, to meet the needs of larger investors.

Right now, there is an opportunity for institutional investors to harvest “the most pronounced risk-adjusted returns” from allocations to insurance-linked securities (ILS), according to Jo Stanton, Chair of ILS Bermuda and Head of Finance at Tangency Capital, speaking this morning at Convergence 2023.

Bermuda continues to be the world-leading insurance-linked securities (ILS) domicile, with the vast majority of the catastrophe bond market and a significant proportion of the rest of the ILS market, domiciled or serviced on the island, while its industry continues to drive forwards reinsurance and capital markets Convergence.

Catastrophe bond funds in the UCITS format delivered an average return of 11.81% across the group according to the Plenum CAT Bond UCITS Fund Indices, with a number of factors continuing to drive returns towards record annual levels.

The Insurance Open Protocol reporting template and associated manual for insurance-linked securities (ILS) and reinsurance linked investment funds have been updated by the Standards Board for Alternative Investments (SBAI) in consultation with participating ILS managers, investors and interested parties.

The ability to customise industry-loss warranties (ILW’s) is seen as a key trait in the reinsurance-linked asset that assists in the portfolio construction process, but demand for ILW protection has fallen slightly among reinsurers, according to the CEO of the City National Rochdale Select Strategies Fund.