Georges Bolli brings two decades of quantitative analysis and risk modelling experience for CAT Bonds and Insurance Linked Securities to Solidum Partners. Prior to joining Solidum Partners, he was Head Modelling and Analytics at Credit Suisse Insurance Linked Strategies, risk modeler for non-life peak risks with Swiss Re and non-life reserving actuary with Zurich Insurance.

The linked presentation takes a closer look at the topic of hurricane season forecasts. Hurricanes are the most important peril type for all ILS funds. This makes it all the more important for managers to carry out detailed and in-depth analyses and, if necessary, to make changes to the portfolio. 

The U.S. government's announcement of massive tariffs on imports to the U.S. led to severe distortions in global equity markets. In times of high volatility, few asset classes can escape the general downturn. Due to their structural independence from the general economy, ILS investments have historically shown high immunity to severe turbulence in the general markets. Consequently, ILS investments are expected to provide a stabilizing role for a diversified portfolio during the volatile period of April 2025.

In recent months, in conversations with investors in Solidum's Cat Bond and ILS funds, questions have been raised more frequently about the existence - or even the possibility - of Cat Bond Index products. We have taken this as an opportunity to summarize our thoughts on the subject in this market commentary.
We wish you an interesting read.

The year 2025 started with a catastrophic fire event that affected not only the insurance industry but will have an impact on the ILS asset class as well. The Palisades and Eaton fires in the Los Angeles area both erupted on Jan. 7, fuelled by severe drought conditions and strong Santa Ana winds. Fire fighting efforts lasted until February before the blazes were fully contained.

In the evening hours of October 9, Hurricane Milton made landfall on the eastern coast of Florida, south of Tampa Bay. While the storm was certainly a remarkable cyclone in many aspects, labels such as ‘the storm of the century’ that were used by the media during the reporting on this event seemed exaggerated all along.

On September 27, 2024, category 4 hurricane Helene made landfall in Florida's Big Bend region. Due to the storm’s high forward speed, hurricane force winds reached far inland and affected Georgia and the Carolinas as well. In addition, the system was very large, so that regions far from the centre of the storm were still exposed to strong winds and storm surge. In the hinterland, Helene came to a standstill and rained down over a large area, causing severe flash flooding, particularly on the flanks of the Appalachian Mountains.

On the basis of a continuing hard reinsurance market and driven by high coupons on catastrophe bonds, the ILS market delivered a strong performance for investors in the first half of 2024. The market continues to grow at a healthy speed, and spreads remain at very attractive levels.

The linked report discusses in detail the recent developments in the ILS market and provides an outlook for the asset class for the coming months.

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.

On the first day of the new year 2024 a strong Mw 7.5 (Mj 7.6) earthquake occurred on Japan's west coast with an epicenter on the northern Noto Peninsula. This tremor was the strongest shake to affect Japan in nearly one decade.

Initial expectations of the earthquake's financial impact on the insurance industry were published over the following days and put this event in the mid-single digit USD billions insured loss.