Insurance Linked Investments

Our catastrophe bond and insurance-linked securities (ILS) conference, Artemis London 2025 is tomorrow. Held in London on September 2nd, over 220 people are joining us for a full-day of in-depth discussion about the ILS market and valuable networking. Register to attend and join the crowd.

Three key dominant trends have been revealed following a record period of catastrophe bond issuance according to Richard Pennay, CEO, Aon Securities, the specialist investment banking and insurance-linked securities (ILS) broker-dealer unit of the global insurance and reinsurance broker.

The amount of alternative capital in reinsurance supplied by insurance-linked securities (ILS) strategies and structures has reached a new high of $121 billion as of the middle of 2025, which Aon Securities notes was driven by strong catastrophe bond growth and supported by ongoing expansion of the sidecar sector as well.

Following its recent publication of a discussion paper on rating insurance-linked securities (ILS), with a focus on catastrophe bonds, Moody’s Ratings has moved forward and now proposes a new methodology for rating cat bonds and other ILS, seeking final feedback before its implementation.

Every few years it feels like groundhog day again, as we begin to see a rise in negative sentiment towards the insurance-linked securities (ILS) market and its investors from major traditional reinsurance companies, typically at a time of rising competitive dynamics in the marketplace.

Twelve Securis, the specialist insurance-linked securities investment manager, has made some changes to the leadership for its private ILS focused division, with long-standing employee Paul Larrett named as the new Head of Private ILS, as incumbent Herbie Lloyd is set to depart the company.

Sompo Holdings, Inc. has announced that it will acquire insurance and reinsurance group Aspen Insurance Holdings in a deal valued at $3.5 billion, while it cites access to alternative capital through the Aspen Capital Markets unit as a key benefit and a “highly differentiated product offering.”

The recent growth trend in the alternative reinsurance capital market is forecast to persist into 2026, as supply of capital from investors and demand from sponsors seeking risk transfer remain robust, Fitch Ratings has said.

Aeolus Capital Management Ltd., the specialist insurance-linked securities (ILS) and reinsurance investment manager, is researching and working with artificial intelligence tools to see how the technology can add detail to modelling of perils and aid in making risk selection decisions.

The reinsurance market cycle has become more subdued thanks to sound risk management practices, strategic use of technology and a maturing partnership with alternative capital (ILS), according to rating agency AM Best.