
March 2025 was a positive month for the insurance-linked securities (ILS) fund sector, with a strong 0.82% average return across the sector according to the .At a 0.82% average return across the ILS funds tracked in the Index, March 2025 was the fourth highest performance for that month since tracking began.For the first-quarter of 2025, the effects of the California wildfires have remained the main detractor from performance for the year so far, with the ILS Advisers Fund Index at -0.85% for the year to March 31st.Aggregate catastrophe bond and ILS positions felt the effects of US severe weather in the month, with further impacts as some positions accumulated more losses.
ILS Advisers explained, “A powerful early-season severe weather system swept across the central and southern U.S.in March, producing numerous tornadoes, hail, and wildfires.These events will further erode multi-peril aggregate ILS positions.” Which was evident in , which said during the month it now anticipates a recover from its aggregate Sanders Re cat bonds after the severe weather events in March.
Despite this additional impact from aggregate catastrophe losses, as well as any impacts to any private ILS positions from the same in March, the industry reported a strong performance considering.All 29 of the ILS funds tracked by the ILS Advisers Index that have reported returns for the month so far were positive for March 2025.Private ILS fund strategies, that allocate across the spectrum of ILS instruments, reinsurance and retrocession, delivered a 0.94% return as a group.
Catastrophe bond funds were slightly lower, as the pure cat bond funds tracked by the Index delivered a 0.75% gain for March.There was a relatively wide performance range, as we often see, with the worst performing fund returning 0.43%, while the best performing ILS fund tracked by the Index in March delivered a 1.50% return.You can track the .
It comprises an equally weighted index of 37 constituent insurance-linked investment funds which tracks their performance and is the first benchmark that allows a comparison between different insurance-linked securities fund managers in the ILS, reinsurance-linked and catastrophe bond investment space..All of our Artemis Live insurance-linked securities (ILS), catastrophe bonds and reinsurance can be accessed online.Our can be subscribed to using the typical podcast services providers, including Apple, Google, Spotify and more.
Publisher: Artemis