Swiss Re Insurance-Linked Fund Management

PCS - Emerging Risks, New Opportunities

White Mountain cites improved Elementum fund returns & ILS market conditions


White Mountains has reported significantly improved performance from its investments into the ILS funds managed by Elementum Advisors in 2023 to the end of April, while also explaining again the ILS market conditions are highly attractive at this time.

elementum-advisors-white-mountainsTo the end of April 2023, White Mountains has reported a 5.1% return from its growing investments into insurance-linked securities (ILS) funds managed by Elementum Advisors.

Which is a considerably improvement on the -4.6% return it earned from its investments into Elementum ILS funds for full-year 2022.

White Mountains said that 2022 was a “tough year” for Elementum and the broader ILS market.

But things are greatly improved now and the company notes that “Current conditions for ILS investing are highly attractive.”

White Mountains investments into Elementum managed ILS funds increased this year, with the company n 2023 making a further $100 million investment into them.

White Mountains CEO Manning Rountree had previously explained in April that, at Elementum Advisors, “tailwinds” are now emerging for the ILS investment manager.

Then, as we reported just over one week ago, we learned that Elementum has raised an additional $150 million in capital from investors for deployment into higher-risk ILS funds at the recent reinsurance renewals.

According to the latest data in our Insurance-Linked Securities Investment Managers & Funds Directory, Elementum Advisors assets under management reached roughly $3.7 billion this month.

White Mountains noted that AUM is steady at this level in 2023, while trailing twelve month EBITDA is down 17% quarter-on-quarter to $7 million in 2023. But that still looks like Elementum is on-track to a far better year than 2022, when adjusted EBITDA was down 31% at $9 million for the full-year.

It will be interesting to see how the full-year pans out for White Mountains investments into Elementum Advisors ILS funds.

John DeCaro, Founding Principal at Elementum Advisors, will join us in Singapore as a speaker at our ILS Asia 2023 conference.

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