The broadly diversified portfolio of insurance-linked securities (ILS) and reinsurance investments managed by pension investment firm PGGM on behalf of end-client the Dutch pension PFZW, has returned 5.5% over the first-half of 2024.
The 5.5% ILS portfolio return for the first-half of 2024 is slightly down on the prior year’s 6.3%.
We suspect that the spread developments seen in the catastrophe bond market during the second-quarter may have been a partial driver of the slight decline.
But it’s also important to note that the return of all ILS market benchmark indices are tracking slightly behind 2023 this year, which is perhaps no surprise given last year saw records broken, but that the first-half of 2023 also saw ILS investors and ILS funds benefiting from recovery of values of certain ILS assets after hurricane Ian.
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