Catastrophe bonds and insurance-linked securities news

Catastrophe bond issuance for the first-half of 2026 is now projected to reach $16.3 billion according to the latest Artemis Deal Directory data, which could rise further as there remain a number of offerings in the market which could upsize, while further new deals could emerge.

US primary insurer Allstate has begun the new annual aggregate risk period, that its catastrophe bonds and excess of loss reinsurance are subject to, with a reported $870 million of pre-tax catastrophe losses in April 2026.

The mid-year 2026 property catastrophe reinsurance renewals are seeing pricing outcomes skewing towards the worst end of a -15% to-20%+ range, while catastrophe bonds have become more of a competitive threat to reinsurers now given longer-durations of cover and better rates, according to Aditya Dutt, President of Aeolus Capital Management.

The Massachusetts Property Insurance Underwriting Association (MPIUA) has returned to the catastrophe bond market with an initial target to secure $150 million or more in multi-peril aggregate reinsurance protection through this new Mayflower Re Ltd. (Series 2026-1) issuance, our sources have explained.

Allstate has now secured its targeted $200 million four year source of Florida catastrophe reinsurance protection with its latest catastrophe bond, pricing the notes from this Sanders Re III Ltd. (Series 2026-2) issuance below guidance, Artemis understands.

We’ve learned that State Farm returned to the catastrophe bond market in recent weeks and has now secured a significant $1.5 billion of reinsurance protection through a Merna Re Enterprise Ltd. (Series 2026-1) issuance, which becomes one of the largest cat bond offerings ever.

Mangrove Property Insurance has successfully secured an upsized $111 million of named storm reinsurance protection from its debut Buttonwood Re Ltd. (Series 2026-1) catastrophe bond sponsorship, with all four tranches of notes pricing for spreads at the bottom ends of initial guidance or lower, Artemis can report.

When deciding whether to access insurance-linked securities (ILS) and non-traditional sources of reinsurance capital, the question is no longer whether to engage. Rather it has shifted to identifying how to bring it into your capital model effectively and meet medium to long-term strategic goals, Jason Bolding, CEO of Gallagher Securities has said.

A survey of institutional investors recently undertaken by Gallagher Securities found that 60% are intending to increase their allocations to insurance-linked investments, with catastrophe bonds and similar insurance-linked securities (ILS) seen as the main type of assets in focus.

French reinsurance company SCOR has now secured the targeted $75 million of multi-peril fully-collateralized retrocession it was seeking from its new Atlas Capital DAC (Series 2026-1) catastrophe bond, while the notes priced at the low-end of initial guidance, Artemis has learned.