Ambassador Fund hits $537m as cat bond holdings grow. Private ILW investments steady

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The Ambassador US mutual catastrophe bond fund strategy operated by Embassy Asset Management grew its total insurance-linked securities (ILS) assets under management by approximately 23% in the last quarter of record. Its cat bond holdings have continued to grow taking the fund’s AUM to $537 million by the end of June.

The Ambassador catastrophe bond fund was launched in Q3 2021 by investment advisor Embassy, which has a focus on non-correlated strategies that deliver income to its clients.

With a dedicated catastrophe bond and insurance-linked securities (ILS) investment focus, Embassy became the newest entrant to the US mutual ILS fund marketplace at that time.

The strategy began allocating capital to catastrophe bonds in the quarter to April 30th of 2023, while also entering into its first private ILW arrangement under the Consulate Re structure.

By January 31st 2025, the previous reporting juncture, the Ambassador Fund had grown to almost $418 million in assets.

At that time the fund mix was made up of $330.3 million of catastrophe bonds within its portfolio, while preferred note investments into industry-loss warranty (ILW) contracts under the Consulate Re structure amounted to just over $59 million at that time, and the rest of the net assets comprised short-term investments.

Three months on and the total net assets of the Ambassador Fund strategy reached almost $512 million as of April 30th 2025, a roughly 23% increase in the latest quarter of record.

Since then, the fund has continued to grow to reach $537 million in assets by June 30th this year.

As of April 30th, the fund mix counted catastrophe bond investments valued at $403 million, while ILW investments into Consulate Re cells still amounted to $59 million, and short-term assets had grown to almost $35 million. In addition, the fund also counted $14.7 million of net assets in excess of liabilities, so uninvested cash at that time.

At the January 31st reporting, the Ambassador Fund portfolio held 10 Consulate Re positions, 7 of which were 2025 series and so more recently invested in.

As of April 30th those figures stood at still 10 Consulate Re positions, but with 8 being 2025 series deals.

It’s also worth noting that Artemis has learned that Embassy Asset Management has also been operating a private insurance-linked securities (ILS) fund strategy since 2024.

The Schrodinger Fund I, LLC is a more opportunistic cat bond and ILS focused fund, with a broader investment remit and a target to deliver higher returns than the mutual Ambassador Fund.

The Schrodinger Fund I private ILS fund strategy counted approximately $26 million in assets as of March 2025, we understand.

Ambassador Fund hits $537m as cat bond holdings grow. Private ILW investments steady was published by: www.Artemis.bm
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