Catastrophe bonds and insurance-linked securities news

Everest Group is now targeting as much as an upsized $675 million of multi-peril collateralized North America focused retrocession from its new Kilimanjaro III Re Ltd. (Series 2026-1) and Kilimanjaro III Re Ltd. (Series 2026-2) catastrophe bond transactions, Artemis can report.

German insurer Gothaer Allgemeine Versicherungs AG is now targeting a slight reduction in pricing for its debut catastrophe bond, while the goal remains to secure €100 million of reinsurance limit to cover flood events in Germany with the Yardstick Re DAC (Series 2026-1) issuance, Artemis understands.

While catastrophe bond yields have declined from the highs seen between 2022 and 2024, analysts at Morningstar DBRS expect demand for the asset class to remain strong. Saying that, despite recent yield compression, the market continues to offer equity-like returns that are largely uncorrelated to traditional stock and bond markets.

Florida’s Citizens Property Insurance Corporation has now finalised its reinsurance risk transfer tower of almost $2.82 billion for 2026, securing $691 million of traditional reinsurance at the June 1 renewals, to add to its $2.125 billion of outstanding catastrophe bond protection.

With the first half of 2026 another remarkable period for catastrophe bond issuance, but the market remaining heavily concentrated on North American peak risks, a recent report by Icosa Investments AG has highlighted how diversifiers and normalised valuations between industry-loss-linked and indemnity structures is opening up additional relative-value opportunities.

Swiss Re, the global reinsurer, is launching a new Alternative Capital Solutions unit to encompass its activities in insurance-linked securities and retrocessional hedging and execution, with long-standing senior employee Mirjam Wiget set to lead the team.

We’ve learned that Mercury General Corporation’s (Mercury Insurance’s) new Luca Re Ltd. (Series 2026-1) catastrophe bond issuance has seen its price guidance range now fall for a third time, with the company looking set for strong execution for its second 144A cat bond deal.

Global reinsurance giant Swiss Re has returned to the catastrophe bond market for its third sponsorship of the year, with an initial target to secure $275 million of broad North American peak peril retrocessional protection through a Matterhorn Re Ltd. (Series 2026-3) offering, this publication has learned.

Arch Capital Group has now successfully upsized its latest catastrophe bond sponsorship, securing $150 million of property catastrophe retrocession for peak North American perils from the Ramble Re Ltd. (Series 2026-1) issuance, while the spreads settled at the low-end of reduced guidance, Artemis can report.

Achmea, the Netherlands headquartered European insurance group, has now secured a one-third upsized €100 million source of collateralized European windstorm reinsurance from its new Windmill III Re DAC (2026-1) catastrophe bond, pricing the notes below the initial guidance, Artemis has learned.