Fermat Capital Management

The cat bond market has benefited from hardening rates and more remote structures.

The acquisition gives UK asset manager Liontrust a broader European footprint and cat bond products.

Reinsurers congregating in Bermuda flagged a lack of interest in helping under-capitalised Floridian insurers and under-priced diversifiers, with positive implications for ILS participation.

The ILS manager said the cat bond sector could double to become a $70bn market in the next three to five years.

The headline market drop in AuM belies a more lively growth story for funds operating outside of the ILS major league.

The two ILS firms were among those participating in a $20mn fundraise for Elpha Secure Technology.

The figures include funds managed by ILS manager Fermat Capital Management.

The hardening rate environment in Florida provided a mid-year opportunity for some, but overall there was little growth.

The firm, which markets Fermat-managed ILS funds, did not specify the size of the new investor commitment.

“Pass-through” tax status would help SPIs issue US-based ILS, Joanna Syroka said.

Seo and Millette both expressed optimism about inflows into ILS over the coming months.

John Seo noted the diversification benefits ILS offers in tumultuous times as cat bond segment avoids spillover from market turmoil.