Fermat Capital Management

Victory Pioneer Cat Bond Fund also added assets in the past month.

The merged business of Twelve Securis ranked third among ILS managers for AuM, behind Fermat and RenRe.

M&A and shifts in distribution arrangements bring risks and opportunities.

This followed a $650mn fall in April, after management change of the fund.

Fermat and GAM announced that the former will take sole control of the GAM FCM Cat Bond Fund.

Commutations need to be optimal for the sponsor and the investor to avoid sponsors taking back chunky risks.

Fees on the GAM Star cat bond funds will drop in May in a recognition of fee competition in the market.

This comes after the firm’s distribution partner GAM has had a challenging few years.

Brokers expect strong competition at remote risk layers at the 1 January renewal.

The executive explored ILS options as MD of hedge fund Horton Point post financial crisis.

The moves mark a major step in realising “trillion dollar” casualty ILS potential, according to Ledger Investing CEO Samir Shah.

The ILS manager leaderboard demonstrates the ongoing popularity of cat bonds.

Liquidity is a key driver of investor activity.

Of the 18 top-tier ILS managers, 10 recorded growth, while eight were flat or down.

Fermat managing director Nelson Seo has forecast that continued high demand could push ILS issuance volumes even higher in 2024.

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.

Models need to be the start of the analysis not the end, Fermat boss John Seo said at Trading Risk’s event in New York.

Avoiding a “bucketing” approach to risk-taking will help the ILS industry fill in the insurance protection gaps, according to Fermat managing director John Seo.

The reinsurer helped Fermat to write $100mn for the Florida state reinsurer’s 2019 cover.

Returns from ILS funds tracked by Trading Risk fell to an average Q1 return of 0.63 percent to 0.65 percent in cat bond and multi-instrument funds.

The ILS investor says 7 percent annual returns have made the asset class an attractive opportunity for the fund.

The firm’s Fermat-managed ILS portfolios lifted assets under management to $3.3bn in Q3.

The average second quarter returns for a group of ILS funds tracked by Trading Risk has increased to 1.36 percent, compared with 0.79 percent for the same quarter last year.