Insurance coverage-linked securities (ILS) fund managers delivered one other optimistic month of returns to their buyers in November 2024, with the typical return of the Eurekahedge ILS Advisers Index reaching 1.03% on the again of optimistic returns for every of the 26 ILS fund methods it tracks.
It was the second month in a row the place all ILS funds integrated into the Index delivered optimistic efficiency for the month, which is spectacular given the US hurricane exercise that had occurred and the tens of billions in losses they drove, within the two months prior.
It means the typical ILS fund efficiency for the first-eleven months of 2024 has come out at an 11.63% return, which implies the Index is simply operating behind 2007 and the document 12 months of 2023.
With one month to go, it’s potential that the Eurekahedge ILS Advisers Index surpasses the 2007 full-year return of 13.22% and strikes into second, behind solely the 13.89% common ILS fund return from 2023.
Please word, the Index web page information is operating just a little behind, regardless of saying 100% of returns are in. So the figures on the Eurekahedge ILS Advisers Index are topic to vary over the subsequent few weeks earlier than a last full-year return for 2024 is accessible.
In November, there have been no disaster loss occasions that had been anticipated to have a cloth affect on any ILS fund methods, ILS Advisers defined.
Disaster bond returns remained sturdy within the month, with the Swiss Re World Cat Bond Index reporting that costs rose 0.37% in November, contributing to a complete return of +1.28%.
Because of this, the group of pure cat bond funds rose by 0.97% for the month of November 2024.
Whereas, the group of ILS fund methods that additionally allocate to non-public collateralised reinsurance and retrocession preparations rose barely extra at 1.08% for the month.
As we mentioned, all ILS funds tracked by the Index had been optimistic for November 2024, given there weren’t any main disaster loss occasions across the globe that threatened cat bonds or ILS.
Nevertheless, there was a variety by way of ILS fund efficiency, with the bottom performer within the Index delivering a 0.22% return, the most effective performer 2.22% for November.
You’ll be able to observe the Eurekahedge ILS Advisers Index here on Artemis, together with the USD hedged model of the index. It includes an equally weighted index of 26 constituent insurance-linked funding funds which tracks their efficiency and is the primary benchmark that permits a comparability between completely different insurance-linked securities fund managers within the ILS, reinsurance-linked and disaster bond funding area.
