ILS Advisers Index returns 1.03% for November 2024 with all funds positive

Insurance-linked securities (ILS) fund managers delivered another positive month of returns to their investors in November 2024, with the average return of the Eurekahedge ILS Advisers Index reaching 1.03% on the back of positive returns for each of the 26 ILS fund strategies it tracks.

It was the second month in a row where all ILS funds incorporated into the Index delivered positive performance for the month, which is impressive given the US hurricane activity that had occurred and the tens of billions in losses they drove, in the two months prior.

It means the average ILS fund performance for the first-eleven months of 2024 has come out at an 11.63% return, which means the Index is only running behind 2007 and the record year of 2023.

With one month to go, it is possible that the Eurekahedge ILS Advisers Index surpasses the 2007 full-year return of 13.22% and moves into second, behind only the 13.89% average ILS fund return from 2023.

Please note, the Index page data is running a little behind, despite saying 100% of returns are in. So the figures on the Eurekahedge ILS Advisers Index are subject to change over the next few weeks before a final full-year return for 2024 is available.

In November, there were no catastrophe loss events that were expected to have a material impact on any ILS fund strategies, ILS Advisers explained.

Catastrophe bond returns remained strong in the month, with the Swiss Re Global Cat Bond Index reporting that prices rose 0.37% in November, contributing to a total return of +1.28%.

As a result, the group of pure cat bond funds rose by 0.97% for the month of November 2024.

While, the group of ILS fund strategies that also allocate to private collateralised reinsurance and retrocession arrangements rose slightly more at 1.08% for the month.

As we said, all ILS funds tracked by the Index were positive for November 2024, given there weren’t any major catastrophe loss events around the globe that threatened cat bonds or ILS.

However, there was a wide range in terms of ILS fund performance, with the lowest performer in the Index delivering a 0.22% return, the best performer 2.22% for November.

You 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 first benchmark that allows a comparison between different insurance-linked securities fund managers in the ILS, reinsurance-linked and catastrophe bond investment space.