Catastrophe bonds and insurance-linked securities news

A new commentary by Markets Group, a company that specialises in forums for institutional allocators, has highlighted how Nordic allocators are increasingly looking at insurance-linked securities (ILS) and catastrophe bonds in particular as a complement to institutional fixed income and alternatives allocations.

Hannover Re has now successfully priced its latest catastrophe bond sponsorship, securing a 60% upsized $200 million of additional North American peak peril retrocessional reinsurance from the new 3264 Re Ltd. (Series 2026-1) issuance, with both tranches of notes pricing below guidance, Artemis understands.

Porch Group, the US homeowner’s specialist insurer has now priced its debut catastrophe bond, securing the targeted $100 million in multi-peril collateralized catastrophe reinsurance through the Harbor Crest Re Ltd. (Series 2026-1) issuance, while the notes priced at the lowest-end of reduced guidance, Artemis has learned.

As Anthropic’s advanced cybersecurity AI model, Claude Mythos, continues to generate significant noise across the cyber sector, investment manager Man Group notes that the per-occurrence structures and high attachment points of existing cyber catastrophe bonds should provide meaningful insulation from future turbulence, for when more advanced AI models eventually become widely available.

While catastrophe bond yields have been on the decline for a number of years now, private bank and asset manager VP Bank AG continues to give the insurance-linked securities asset class a neutral weighting, noting that loss-free yields still remain above average.

The Ambassador US mutual fund strategy operated by Embassy Asset Management that allocates to catastrophe bonds and private insurance-linked securities (ILS) that we believe to be largely ILW’s, has grown its assets under management further to reach almost $900 million as of this week.

With the Monetary Authority of Singapore (MAS) now having launched its awaited consultation on a Protect Cell Company (PCC) structure that will be suited to efficient insurance-linked securities issuance, collateralised reinsurance and sidecars, Regional Director George Ong of Aon has highlighted the opportunity this presents.

Porch Group, the US homeowners specialist insurer, is now targeting lower pricing for its debut catastrophe bond sponsorship, still aiming to secure $100 million in multi-peril collateralized catastrophe reinsurance through the Harbor Crest Re Ltd. (Series 2026-1) issuance but now at a lower spread, Artemis can report.

Hannover Re, the global reinsurance company, has facilitated issuance of a new $7.47 million private LI Re 2026-3 catastrophe bond using its Bermuda-domiciled transformer vehicle Kaith Re Ltd., with this new deal expected to support a collateralized, transformed and securitized reinsurance or retrocession arrangement.

Today we have added four more expert speakers to the Artemis London 2026 website, our next catastrophe bond and insurance-linked securities (ILS) market conference. Join us in London on September 1st for a full-day of in-depth discussion about the ILS market and valuable networking, register to attend the conference here.