Loss creep from catastrophes hurt ILS fund's return
Posted On: Oct. 22, 2019 6:35 AM CST
Loss creep from catastrophes over recent years has hurt the third-quarter returns of reinsurance specialist fund manager Bermuda-based Blue Capital Management Ltd.'s insurance-linked securities fund, Artemis reports. Blue Capital Alternative Income Fund reported negative return of 9.7% in the third quarter compared with a positive return of 2.9% in the second quarter. The fund had to set aside additional reserves as increased estimated claim losses from 2017 and 2018 catastrophes dented its return for the third quarter.