The broad benchmark index for insurance-linked securities (ILS) funds, the Eurekahedge ILS Advisers Index, has recorded the best monthly return since its inception in 2006 for the second consecutive month, being up by 1.91% for the month of September 2024.
Only a month ago, this index of ILS fund returns was up by 1.71% for August 2024, now restated to 1.69% in any case fund results were in, which beat its previous highest monthly performance record.
With seasonal returns strong through September, the returns generated by ILS funds tracked by ILS Advisers Index rose further, for a mean performance for the month of 1.91%.
That took the year-to-date performance of this ILS fund index to 9.60% by the tip of September 2024.
While September was an “eventful” month for global natural catastrophe events, comparable to typhoon Yagi in China and Vietnam, storm Boris’ flooding across central Europe, and after all hurricane Helene in america, ILS Advisers said that despite this “ILS funds proceed their strong path.”
On hurricane Helene, while the economic loss is predicted to be significant, the insurance industry impact appears set to be lower, on which ILS Advisers said, “Helene is subsequently expected to have very limited impact on the ILS market.”
September saw a really strong month for the catastrophe bond market, with the Swiss Re Cat Bond Index total return 2.69% for the period.
That helped pure catastrophe bond funds deliver a September 2024 average performance of 1.65%.
But, private ILS funds, so people who also allocate capital to collateralised reinsurance and retrocession deals, gained 2.28% in September, so outpaced the catastrophe bond focused fund strategies.
Every fund that has tracked and reported thus far within the within the Eurekahedge ILS Advisers Index was positive for the month of September 2024.
There was a comparatively wide selection of performance, but all very positive still, with even the bottom return reported being 0.95%, while the most effective performing ILS fund delivered a powerful 2.90% return for the month.
It’s notable that this index of ILS fund performance is now at its third-highest level for any 12 months on-record and with three months of information still so as to add, it is feasible it would get near a record level of returns for the full-year.
You possibly can track the Eurekahedge ILS Advisers Index here on Artemis, including the USD hedged version of the index. It comprises an equally weighted index of 26 constituent insurance-linked investment funds which tracks their performance and is the primary benchmark that permits a comparison between different insurance-linked securities fund managers within the ILS, reinsurance-linked and catastrophe bond investment space.