Catastrophe bonds and private insurance-linked securities (ILS) largely deliver returns based on insurance and reinsurance risk premiums, but in an environment where uncertainty suggests upside risks to inflation, specialist investment manager Leadenhall Capital Partners LLP has explained how this can play into ILS returns as well.
Financial conditions have been volatile throughout 2026 so far, with the conflict in the Middle East now also driving concerns over inflation.
This has served to underscore the importance of diversification within investment portfolios, with catastrophe bonds and private ILS seen as one asset class that is largely remote from the risks posed by geopolitical shifts.
FULL ORIGINAL PUBLICATION HERE