Hedge Funds Rake in Huge Profits Betting on Catastrophe Risk
Insurance-linked securities behind 2023’s best hedge fund play Weather, inflation delivered the perfect cocktail last year For hedge funds, the science of catastrophes helped generate the best returns of any alternative investment strategy last year. FULL ORIGINAL PUBLICATION HERE
Twelve Capital forecasts longer-lasting heightened ILS pricing environment
Twelve Capital, the Zurich headquartered insurance-linked securities (ILS) and reinsurance investment manager, is forecasting “a longer-lasting heightened pricing environment”, or so-called hard insurance market cycle, with discipline one factor that can help sustain this. The investment manager forecasts returns in the 10% range for liquid catastrophe bond fund strategies in 2024, losses allowing, helped by […]
UCITS cat bond fund assets soar 25% to record near $11bn high in 2023
Catastrophe bond funds in the UCITS format experienced significant growth in assets under management in the final quarter of 2023, growing by 10.5% that period, to end the year with almost $11 billion of assets across this group of cat bond funds. The combined assets under management (AUM) of the main UCITS catastrophe bond funds […]
Gallagher Securities launches European entity, as broker targets ILS expansion
Targeting an expansion of its insurance-linked securities (ILS) and alternative reinsurance capital activities, reinsurance broker Gallagher Re has announced the launch of a Paris based entity named Gallagher Securities Europe SAS, to grow activities in the region. Gallagher Securities is the capital markets and insurance-linked securities (ILS) arm of Gallagher Re, providing structuring, arrangement and […]
Beazley ‘delighted’ to sponsor first 144A cat bond via the Lloyd’s London Bridge platform
The world’s oldest insurance and reinsurance marketplace, Lloyd’s, has confirmed the issuance of the first 144A catastrophe bond transaction via London Bridge 2 PCC Limited, the Beazley sponsored $100 million transaction. The deal, which is listed in the Artemis Deal Directory, is the first 144A property catastrophe bond sponsored by London-based specialty insurer and reinsurer Beazley. […]
Catastrophe bond funds UCITS average 16% return for 2023
Catastrophe bond fund strategies in the UCITS format have delivered an impressive almost 16% average return for the full-year 2023, rising every single month during the period and setting a new record for this popular segment of the cat bond fund space. The Plenum Investments Index that tracks the returns of catastrophe bond funds in […]
ILS fund Index sets new annual record, hits 13.33% return after 11-months
With one month still to be counted, the Eurekahedge ILS Advisers Index has already a new record high annual return in 2023, as the average return of the insurance-linked securities (ILS) funds tracked rose to almost 13.3% after November. The previous high for the annual return of the Eurekahedge ILS Advisers Index, which tracks a basket […]
Swiss Re cat bond index hits record 19.69% total-return for 2023
The total-return of the outstanding catastrophe bond market in 2023 reached a record level of 19.69%, according to full-year data from the Swiss Re Cat Bond Performance Indices. While the Index failed to reach the magic 20% mark by the end of the year, it has still set an extremely high bar in 2023 for […]
Tenax Capital’s UCITS cat bond fund returns 17.9% net in 2023
Demonstrating the strong performance of catastrophe bond investments in 2023, Tenax Capital, the London based hedge fund investment manager that operates a UCITS cat bond strategy, is reporting a 17.9% net return in EUR for its fund for 2023. Tenax Capital explains that this represents “a record performance in a record year,” for the firm […]
Alternative capital surpasses $100bn in 2023, cat bond market hits all-time high: Aon
Aon’s Reinsurance Market Dynamics report reveals that 2023 witnessed an unprecedented surge in the utilisation of alternative capital, marking the sector’s best performance in over two decades. The report underscores the increasing reliance on alternative capital, with a notable milestone of crossing the $100 billion threshold for the first time, signaling a 7% increase from […]