Catastrophe bonds and insurance-linked securities news

Aon Securities, the broker-dealer and investment banking arm of the broking giant, believes catastrophe bond market and broader third-party reinsurance capital activities will remain robust through the rest of 2026, according to CEO Richard Pennay.

Catastrophe bond market yields rose slightly through the month of March 2026 as seasonal widening effects resulted in a higher risk spread or discount margin for cat bonds. Which slimmed the year-on-year decline in the coupon to around 13%, the latest data from Plenum Investments shows.

After breaking all records last year, catastrophe bond market momentum persisted through the first-quarter of 2026, with a significant $6.7 billion of new risk capital analysed and tracked in the period, making Q1 2026 the second most active start to the year in the cat bond market’s history, Artemis’ new quarterly catastrophe bond market report […]

Consultancy Lane Financial LLC launches its new report on the catastrophe bond market with some good news, its analysis shows the outstanding market yield of non-impaired natural cat bonds is no longer as soft as it was at the end of 2025, but the firm also highlights that investor returns have been eroded by falling […]

Kin Insurance, the direct to consumer insurtech, appears to have fixed on the target size for its new Hestia Re Ltd. (Series 2026-1) catastrophe bond issuance, we are told, with now $335 million of fully-collateralized named storm reinsurance protection sought from the deal, while pricing has lowered again for some of the notes on offer.

The Japanese market represents a material opportunity for future expansion in non-cat sidecars as the broader non-cat sidecar market continues to grow through an influx of new sponsors and heightened activity, according to Bill Dubinsky, Managing Director and Chairman of Gallagher Securities.

Zenkyoren has now secured the targeted $100 million of multi-year collateralized Japanese earthquake reinsurance protection from its new Nakama Re Pte. Ltd. (Series 2026-1) catastrophe bond issuance, with the notes now priced at the mid-point of guidance, this publication can report.

Alternative or third-party reinsurance capital, so that deployed through insurance-linked securities and related collateralized structures, grew by 18% over the course of 2025 and 10% just in the fourth-quarter to reach a record $136 billion at the end of the year, according to the latest estimate from broker Aon.

US military mutual insurer USAA is back in the catastrophe bond market for its 47th sponsorship that we have analysed and tracked, with an initial target for $600 million of reinsurance from this Residential Reinsurance 2026 Limited (Series 2026-1) issuance that could make it the largest ever in the series.

Plenum Investments, the Zurich based specialist catastrophe bond and insurance-linked securities (ILS) investment manager, has published a position paper clearly communicating its thoughts on the European Securities and Markets Authority (ESMA) recommendation regarding cat bond eligibility under the UCITS investment framework.