Cat Bonds and ILS - Review of the year 2023 and outlook 2024

2023 was generally a good year for the insurance-linked securities asset class. On this basis, the Solidum ILS and Cat Bond funds were able to achieve an exceptionally attractive performance. The Solidum Cat Bond Fund and Solidum ELS, SAC3 ended the period with their best annual results. The Solidum ELS, SAC2, with its long performance history dating back to 2006, shows that the year is not a singular event after all. Both 2007 (due to very good market conditions following Hurricane Katrina in 2005) and 2010 (with an exceptional earnings contribution related to the active workout of a distressed cat bond), the Fund’s performance in its functional USD currency class was even higher or of the same order of magnitude.

The linked report discusses in detail the factors that have driven performance over the past twelve months and provides an outlook for 2024.