Elementum launches ILS fund with US wind focus

By Henry Gale

Feb 18 - (The Insurer) - Alternative investment manager Elementum Advisors has announced a new multi-investor vehicle targeting U.S. wind-exposed catastrophe bonds with higher risk premiums.

Elementum Njord Cat Bond Fund, Ltd. was launched on February 15. It aims to capitalise on the cat bond market's growth, which remains concentrated in U.S.-focused perils, while focusing on those investments with a higher risk and return potential.

Over three quarters of the overall cat bond market comprised U.S. wind-exposed bonds as of January 2025, Elementum said.

"The characteristics of a cat bond portfolio with US Wind exposure consistent with the overall market were designed to appeal to a wide range of investors," said founding partner John DeCaro.

"Njord is one of many initiatives that Elementum is pursuing in 2025 to further differentiate ourselves within a competitive ILS marketplace."

The vehicle, open to all qualified investors globally, expands Elementum's suite of higher-yield investment products. The investment manager launched a higher-risk collateralised reinsurance investment strategy last month.

A report published by Swiss Re earlier this month found that the ILS market grew by 10.5% year on year to the end of 2024, following a year of record issuance. The reinsurer said the market "is on track to exceed the $50bn mark of outstanding notional in the near future".