Elementum launches Enhanced Yield Strategy, expands collateralized reinsurance investment range

Elementum Advisors, LLC, the alternative investment manager that specialises in collateralized natural catastrophe event reinsurance investments, has unveiled a new strategy that enhances the firm’s higher-yield strategy complement.

The company’s new strategy, which launched on January 1, 2025 across multiple mandates with a number of institutional advisors, has a collateralized reinsurance investment (CRI) focus that leverages Elementum’s counterparty relationships, as well as its expansive structuring and modeling capabilities.

The investment manager’s new strategy also represents an “accretive blend” between the concentrated nature of Elementum’s higher risk structured CRI strategy, and the potential diversifying benefits provided by the company’s risk remote core CRI strategy, all while remaining committed to the principles of Elementum’s long-established investment approach.

From what we understand, this new offering appears to be a mid-risk insurance-linked securities (ILS) fund strategy, blending the best aspects of the high-yield approach with Elementum’s long-established core and diversifying collateralized reinsurance fund investment strategy.

It’s also worth highlighting that Elementum’s strategy launch further cements the company’s efforts to expand its range of fund and strategy offerings within the collateralized reinsurance investments market.

“This new strategy extends our existing suite of higher-yield products while enabling us to provide capital across an even wider range of the risk and return spectrum,” commented Paul Barker, Partner and Portfolio Manager at Elementum and head of the firm’s Bermuda office.

He added: “As we continually strive to be a market-responsive manager, we are excited about the possibilities this strategy can offer as part of our broader value proposition within the insurance-linked securities sector.”

Readers may recall that in 2023, Elementum raised $150 million in capital from two investors for its higher-yield strategy.

The investments, which were specifically targeted at higher risk investment strategies presented by the hard reinsurance market environment at the time, were deployed solely into collateralized primary reinsurance contracts.

Furthermore, in 2022, the firm added a number of new investors to its high-yield ILS fund strategy, which allowed for the investment manager to capitalise on reinsurance market dislocation.