Catastrophe bonds and insurance-linked securities news

The catastrophe bond market has reached a scale where its continued growth actively reinforces the investment case, offering greater scalability, improved liquidity and broader scope to diversify within natural catastrophe risk, according to Dr. Rom Aviv of GAM Investments.

The full report is now available to download from Artemis’ 2026 Monte Carlo Rendezvous Executive Roundtable. The event featured leading insurance-linked securities and reinsurance market experts discussing investor sentiment, market conditions, pricing discipline and emerging opportunities across the catastrophe bond and ILS landscape.

Speaking earlier today during Hannover Re’s Baden-Baden media briefing, Patrick Horstmann Managing Director, and Head of insurance-linked securities (ILS) at the firm, emphasised that the German reinsurer sees ILS capital as a sustainable addition to the global reinsurance market and a key area of growth for the company.

Franklin Templeton Investment Solutions, the hedge fund-focused arm of the global asset manager, has moderated its stance on the catastrophe bonds asset class slightly from ‘strongly overweight’ to ‘overweight’ for Q4 2026, which in turn has led the firm to shift its stance on the insurance-linked securities market to ‘neutral’.

Primary catastrophe bond market activity is set for a strong final quarter in 2026, driven by expectations for a strong pipeline and how the lower spread environment may encourage more sponsors to enter the market, according to Sidney Rostan, Head of ILS Strategies at SCOR Investment Partners.

The Asian Development Bank (ADB) is actively promoting catastrophe bonds for sovereign disaster risk financing across the region, but Thomas Kessler noted last week that this will require cooperation across governments, research and modelling institutions, insurers and the ILS investor base.

SafePoint Insurance Company is back in the catastrophe bond, with an initial target to secure $250 million of multi-year named storm reinsurance protection from capital market investors through a Nature Coast Re Ltd. (Series 2026-2)  cat bond issuance, Artemis has learned.

US insurer Allstate has reported a smaller $220 million in pre-tax catastrophe losses for the month of September 2026, which has lifted the total across the current annual aggregate risk period for its catastrophe bonds to $3.372 billion.

The World Bank has now confirmed that it has partnered with Nepal to explore the issuance of a parametric earthquake catastrophe bond for the country.

Speaking yesterday at the ILS Bermuda Convergence 2026 conference, Bob Smith, President & Co-CIO of fixed income and alternative solutions manager Sage Advisory, explained that he sees insurance-linked securities as an asset class that can expand the horizon of impact investing.