Fermat Capital Administration, the specialist disaster bond and insurance-linked securities (ILS) funding supervisor, reached a brand new milestone when it comes to cat bond and ILS property underneath administration on the finish of 2024, surpassing the $10 billion degree for the primary time.
Impressively, Fermat Capital Administration grew its ILS property underneath administration (AUM) by round $500 million over the course of the second-half of 2024, representing a roughly 5.3% improve in that six month interval.
With $10.11 billion of cat bond and ILS property underneath administration (AUM) as of December thirty first 2024, this places Fermat Capital Administration on the prime of Artemis’ directory of insurance-linked securities (ILS) fund managers.
In addition to inflows from traders trying to entry its disaster bond and different insurance-linked methods (ILS), Fermat will even have benefited from amassed and retained earnings throughout its funds, because the cat bond and ILS sector delivered robust returns in 2024.
Fermat has been constructing out its ILS fund providing lately, increasing into new courses of insurance coverage and reinsurance enterprise as properly.
Notably, the funding supervisor launched a Fermat branded UCITS disaster bond fund in 2024, which we reported not too long ago had expanded from its launch to $751 million in assets by the end of last year.
Fermat Capital Management also established its casualty insurance-linked securities (ILS) business in 2024, as the corporate that has traditionally been better-known for its pure disaster bond focus expanded its vary of insurance-linked funding choices.
Fermat Capital Administration Co-Founder and Managing Director John Seo will moderate a discussion on the casualty ILS investment opportunity at our upcoming New York conference ILS NYC 2025 on February 7th.
With now round $10.11 billion of cat bond and ILS property underneath administration, Fermat is constant to broaden on its vary of fund choices and growing direct investor relationships.
Simply final week, the ILS supervisor announced a new range of commingled ILS strategies that are already supporting around $2 billion in assets, as well as two key hires to its global investor relations team.
The $10 billion of ILS property milestone is a notable one for Fermat, though it’s vital to additionally add that property can ebb and stream with valuations of positions. So, with ongoing occasions comparable to the California wildfires affecting certain catastrophe bonds, the whole might fluctuate round this time.
However, with a rising ILS funding providing and platform, Fermat Capital Administration seems well-positioned to proceed increasing over the approaching yr, as demand for ILS capital continues to rise throughout the insurance coverage and reinsurance trade, whereas investor curiosity within the ILS asset class is equally rising.
View info on many devoted ILS fund managers, in addition to reinsurers providing ILS type funding alternatives, in our Insurance-Linked Securities Investment Managers & Funds Directory.
