Catastrophe bonds and insurance-linked securities news

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.

Nectaris Re Ltd., the rated reinsurance platform backed by ILS manager Leadenhall Capital Partners LLP, is targeted to receive its first catastrophe bond protection, through a currently $60 million Arthur Re Ltd. – Tranquil Re 2026-1 issuance, Artemis can report.

US primary insurer Allstate has reported a relatively low month of catastrophe losses for May 2026, announcing $289 million pre-tax. This represents a 63% decrease from the prior year, and when combined with April’s losses, this brings Allstate’s total pre-tax catastrophe losses for April and May 2026 to $1.16 billion.

With the 2026 Atlantic hurricane season now underway, the key meteorological factors influencing tropical cyclones have pointed towards a below-average season in terms of storm numbers, which affects the tactical positioning of an insurance-linked securities (ILS) or catastrophe bond portfolio, a new report from Solidum Partners AG has highlighted.

The catastrophe bond and insurance-linked securities (ILS) markets played a very significant role in determining price levels and driving improved terms and conditions for reinsurance buyers at the June 2026 Florida reinsurance renewals, according to Gallagher Re’s Head of North American Property, Adam Schwebach.

A recent paper from investment manager Neuberger Berman highlights catastrophe bonds as a “very compelling opportunity” for investors seeking genuine portfolio diversification, which comes at a time when macroeconomic uncertainty and risk-asset volatility are expected to remain in focus for the foreseeable future.

Achmea, the Netherlands headquartered European insurance group, has now raised its target for collateralized European windstorm reinsurance from the new Windmill III Re DAC (2026-1) catastrophe bond by one-third to €100 million, while the price guidance has been lowered, Artemis can report.