Despite lower returns, insurance-linked securities continue to serve as portfolio diversifiers amid volatility in financial markets.
Through the first eight months of 2015, the Swiss Re Cat Bond index had a total return of 2.7% vs. -2.3% for the MSCI ACWI index and -2.8% for the Barclays Global Aggregate index.
The Swiss Re index gained 11.5% in 2013 and 6.3% in 2014.
Yields on cat bonds have continued to fall as investors allocate more to the asset class. S&P, citing Aon data, said in a report last month that alternative capital invested in the reinsurance market is up 12% year-over-year through June, to $66 billion.
