Insurance linked securities (ILS), including catastrophe bonds, are proving resilient options in light of the global downturn in financial markets, says insurance broker Guy Carpenter.

Stable ILS returns are proving attractive options for investors looking to diversify portfolios that have taken a beating from the US economic downturn.

Guy Carpenter Securities MD Laurent Dignat says cat bonds are posting their highest level of growth since Hurricane Katrina amid a growing appetite among fund managers for insurance risk.

"Investors should find ILS products particularly attractive in light of the 2007 credit crunch," Mr Dignat said.