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ILS fund returns accelerated in August to 1.39%

The ILS Advisers Fund Index said August 2026 was the best-performing month of the year so far, lifting 2026 returns to 6.56% year to date.

Reported · Written up by our desk · Reinsurance

Insurance-linked securities investment fund strategies, spanning catastrophe bonds and private ILS, posted accelerating returns in August 2026, according to data from the ILS Advisers Fund Index.

The average return across the index constituent ILS funds reached 1.39% in August, which the outlet said became the best-performing month of the year so far and the strongest single-month performance for the index since October 2025.

ILS fund returns rose with summer seasonality, with ILS Advisers attributing the acceleration in August to premiums earned through the Atlantic hurricane season and price dynamics in the cat bond market.

For 2026, August’s performance lifted the average ILS fund return to 6.56% year to date, with the outlet noting this came even as the broader reinsurance market has softened.

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