Schroders
May 23, 2025
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Hurricane season: Insurance-linked securities and navigating non-financial risks

As we approach the Atlantic hurricane season, and with the fallout from the California wildfires still making headlines, we examine how Schroders Capital’s insurance-linked securities team deploys its active strategy to navigate changing market and climatic conditions.

It is the time of year when attention, particularly in states along the Gulf and East Coasts of the US, and within the insurance sectors, turns to what we might see during the coming hurricane season in the Atlantic Basin. Colorado State University (CSU)  issued its first forecast  for the 2025 season earlier this month, in which it predicted “above average” activity that was widely reported on in the media, albeit under less dramatic headlines than in 2024.

The Atlantic hurricane season, which is considered to last from June to November, is a key period because that is when landfalling hurricanes are most likely to occur. It is also when investments that are exposed to these weather-related events face their peak time of being “on-risk” and associated risk premia are earned.

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This site is for informational purposes and does not constitute an offer to sell or a solicitation of an offer to buy any security which may be referenced herein. This site is solely intended for use by institutional investors and institutional-investment industry consultants.

Schroder Investment Management North America Inc. (“SIMNA”) is an SEC registered investment adviser, CRD Number 105820, providing asset management products and services to clients in the US and registered as a Portfolio Manager with the securities regulatory authorities in Canada.  Schroder Fund Advisors LLC (“SFA”) is a wholly-owned subsidiary of SIMNA Inc. and is registered as a limited purpose broker-dealer with FINRA and as an Exempt Market Dealer with the securities regulatory authorities in Canada.  SFA markets certain investment vehicles for which other Schroders entities are investment advisers.

Schroders Capital is the private markets investment division of Schroders plc. Schroders Capital Management (US) Inc. (‘Schroders Capital US’) is registered as an investment adviser with the US Securities and Exchange Commission (SEC).It provides asset management products and services to clients in the United States and Canada.For more information, visit www.schroderscapital.com

SIMNA, SFA and Schroders Capital are wholly owned subsidiaries of Schroders plc.



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