Insurance Linked Investments

The Government of the United Kingdom through HM Treasury has now published its response to the July 2025 consultation on a more flexible and extended risk transformation regime, saying it will pass reforms through legislature to promote insurance-linked securities (ILS) innovation in the country and facilitate a wider range of transaction structures.

Nephila Capital’s insurance-linked securities (ILS) fund management revenues reported within parent Markel’s results rose by an impressive 59% year-on-year, to reach $40.5 million in the first-quarter of 2026.

RenaissanceRe reported a 209% increase in fee income earned from its range of reinsurance joint venture vehicles and insurance-linked securities structures in the first-quarter, while investors benefitted from meaningful income and opted to take profits after the strong performance of these strategies.

A recent survey of insurance-linked securities (ILS) investors conducted by reinsurance broker Gallagher Re and Gallagher Securities reveals a notable rise in market appetite for 2026. The findings indicate that a clear majority of both specialist and generalist allocators intend to expand their exposure to insurance-related assets over the next two years.

Whilst the casualty insurance-linked securities (ILS) space continues to emerge as a transformative capital source for long-tail risk, Yulia Bruskova argues that ILS investors in casualty risk deserve the same level of transparency in exposure and systemic risk understanding that natural catastrophe investors have long been receiving.

Our latest video features another panel discussion from Artemis ILS NYC 2026, a session focused on the expanding range of investment opportunities in the ILS asset class, from our tenth catastrophe bond and insurance-linked securities (ILS) conference in the ILS NYC series, held on February 6th 2026 in New York.

London market insurance and reinsurance firms, including at Lloyd’s, have increased their use of alternative capital and insurance-linked securities in recent years. But while this is seen as supportive of their returns-on-equity and cycle management capabilities, it may also exacerbate rate softening AM Best warns.

Schroders Capital’s Private Debt & Credit Alternatives (PDCA) team, together with global reinsurer Hannover Re, have unveiled the integration of an innovative tokenised capability into its insurance-linked securities (ILS) investment platform, which includes the execution of the first real-world collateralized reinsurance transaction through this platform.

While the broader catastrophe bond market often adopts a wait-and-see posture until the Atlantic hurricane season passes, the current 2026 landscape suggests that the most compelling value may be found during this window of peak uncertainty, according to Ethan Powell, Principal & Chief Investment Officer of Brookmont Capital Management, LLC.

While early forecasts for this year’s Atlantic hurricane season appear mixed, Dr. Benjamin Hohermuth of Schroders Capital ILS suggests that for insurance-linked securities (ILS) portfolios, the regional message is far more important than basin-wide totals. This regional focus creates vital scope for portfolio repositioning ahead of the season and for tactical trading as conditions evolve.