Stone Ridge Asset Management, the New York based alternative risk premia focused investment manager, has reported that its two flagship mutual insurance-linked securities and reinsurance investment fund strategies delivered total returns of 33% and 14.27% for the annual period to October 31st, while combined ILS assets managed in its mutual funds surpassed $6 billion.
Stone Ridge reported that its Stone Ridge Reinsurance Risk Premium Interval Fund, that invests across the spectrum of ILS and reinsurance-linked assets including sidecars and private quota shares, other collateralized reinsurance arrangements and to a lesser degree catastrophe bonds, delivered a 33% total return for the annual period to October 31st 2025.
Impressively, Stone Ridge’s Internal ILS and reinsurance fund actually beat its annual return for the period to October 31st 2024 of 28.25%, although fell behind the peak return of just over 44% from the annual period that ended October 31st 2023.
It takes the 5-year average annual total return for Stone Ridge’s Reinsurance Risk Premium Interval Fund to now 18.67% and the 10-year to 7.87%.
Stone Ridge commented on the latest annual performance of a 33% return that, “Positive performance was a function of two concurrent market dynamics: a substantial rise in reinsurance premiums as a result of losses experienced from Hurricane Ian in 2022 as well as a tightening of terms and conditions during the hard market reset. Despite the large insured losses from the Palisades and Eaton wildfires in California in January 2025, the combination of above average premiums earned during the year and higher deductibles for reinsurance contributed to the strong performance for the Fund during the fiscal year.”
Not only is the total return impressive for the Interval reinsurance mutual fund offered by Stone Ridge, but the strategy has also now grown in terms of assets managed to $1.41 billion by October 31st 2025, up from $1.23 billion as of July 31st when we last reported on it.
Of course, this Interval fund strategy had stood as large as $6 billion in assets alone back at the mid-point of 2018. But, impressively, while the fund took losses in some of the damaging hurricane and catastrophe loss years when the reinsurance market and its terms were softer, investors that stuck with it have likely more than earned their investment losses back in the following few years of stellar performance and now this strategy seems much more size appropriate for the market opportunity and likely to continue benefiting from Stone Ridge’s strong trading relationships going forwards.
Meanwhile, the Stone Ridge High Yield Reinsurance Risk Premium Fund which is the investment manager’s most catastrophe bond focused strategy, ended the annual period to October 31st 2025 delivering a total return to its investors of 14.27%.
That total return trails the 15.48% of the annual period ended October 31st 2024 and 22.92% for the period ended October 31st 2023, but it remains very attractive and will be in the upper-tier of cat bond fund performance for that time-frame, based on data we’ve seen.
This cat bond focused investment strategy, the Stone Ridge High Yield Reinsurance Risk Premium Fund, had total net assets of $3.66 billion by July 31st 2025, which has risen steadily since and is now reported to have reached $3.96 billion as of the October 31st 2025 reporting.
The cat bond fund managed by Stone Ridge Asset Management has now grown by approaching $700 million in assets in just the last year of record.
We understand that, since that date, the Stone Ridge mutual cat bond fund strategy has now surpassed $4 billion in AUM.
Stone Ridge has a third mutual investment fund strategy from which it allocates to catastrophe bonds, ILS and other reinsurance opportunities.
The Stone Ridge Diversified Alternatives Fund is a multi-strategy fund that began incorporating ILS investments to its portfolio in 2023.
As of July 31st 2025, the Stone Ridge Diversified Alternatives Fund held $724 million of catastrophe bonds and other private ILS or reinsurance investments, of which $54.56 million was a cross-investment into the Stone Ridge High Yield cat bond focused strategy.
Now, as of October 31st 2025, Stone Ridge Diversified Alternatives Fund held almost $783 million of cat bond and reinsurance investments, while that cross-investment had grown slightly to $78.84 million.
Direct cat bond investments continued to be the main component of ILS allocation growth for this Stone Ridge Diversified Alternatives Fund, now having reached over $554 million by October 31st 2025. The cat bond, ILS and reinsurance portion of the fund now makes up 41% of the total strategy, up only slightly from 40% at the end of July this year.
In terms of overall cat bond, ILS and reinsurance assets under management of the Stone Ridge mutual reinsurance funds, the upwards trajectory has continued in the last quarter.
At the end of July 2025, after subtracting the cross-investment that Stone Ridge’s multi-asset class alternatives fund makes into its more cat bond focused fund, the combined ILS and reinsurance AUM stood at $5.56 billion.
Now, by the end of October 2025, that figure has surpassed the next milestone, to reach $6.07 billion of assets across the two dedicated mutual ILS funds and the ILS component of the multi-strat fund.
The last time Stone Ridge counted more than $6 billion of assets under management in mutual investment funds was back in 2019 and it had shrunk to as low as $2.56 billion back in October 2022.
So the return to consistent growth has been impressive and of course Stone Ridge had also shifted investors over to its private reinsurance and ILS funds as well, which have also been growing. So the manager’s overall assets under management is far higher in reinsurance, well into the double-digits of billions of dollars now.
As we reported the other day, Stone Ridge’s Longtail Re casualty reinsurance underwriting vehicle has also now built a more than $6 billion asset portfolio.
At now assumed to be well over $10 billion, Stone Ridge remains one of the largest investment managers of ILS and reinsurance assets, in AUM terms, featured in Artemis’ directory of insurance-linked securities (ILS) fund managers.
