Casualty ILS news

Analysts from KBW see the influx of capital into the casualty reinsurance market through insurance-linked securities structures as negative for reinsurers, while on the property catastrophe side they caution that rate softening often tends to be more pronounced than the headlines from the RVS suggest.

Over the past decade, the insurance-linked securities (ILS) market has expanded significantly, while keeping its global talent footprint remarkably lean. According to 20Twenty Search Advisor Jason Sykes, this streamlined operational structure shields ILS professionals from the widespread cost-cutting affecting traditional re/insurance, pointing to a bright future for talent in the sector.

Speaking with Artemis at the 2026 Monte Carlo Rendez-Vous, Kier James, Chief Underwriting Officer (CUO) of MultiStrat, underscored that as the casualty insurance-linked securities (ILS) market continues to grow, it also needs to demonstrate that it can be disciplined throughout market cycles in order to continue attracting capital and build confidence with investors.

While growth in sidecar capital reflects a healthy demand for insurance-linked returns, long-term success will depend on the level of sophistication of structures sitting behind carrier balance sheets, Anthony McKelvy, Managing Partner of collateralized reinsurance company Northern Re told Artemis.

At the S&P Global Ratings briefing in Monte Carlo at the RVS, Maren Josefs, Credit Analyst at the company explained that the big stories in insurance-linked securities has been catastrophe bonds and casualty sidecars this year, but she cautioned the market to remember that investors still don’t like surprises.

As the ILS market expands its reach across casualty, specialty, and cyber, maintaining price adequacy remains a critical boundary for market growth. Speaking with Artemis at the 2026 Monte Carlo Rendez-Vous, Kathleen Faries, CEO of Artex Capital Solutions, outlined her expectations for emerging perils and evolving deal structures heading towards 2027, emphasising that rates must […]

In Monte Carlo today at the Rendez-vous event, senior executives of global reinsurance firm Munich Re explained that they see the trend for some longer-tailed casualty focused sidecars to offer high returns from the asset side as “not a good idea” while the potential for commutation discussions to prove a challenge at the end of […]

While the ongoing growth of the casualty sidecar market is bringing more third-party capital into long-duration risks, it is also creating a test for investor returns. Speaking this week, Fitch Ratings’ Senior Director, NA, Brian Schneider highlighted that as capital flows into the space, the additional supply is putting added pressure on casualty pricing.

Northern Re, the collateralized reinsurance company that provides investors with access to the returns of its long-tail casualty underwriting business, has now surpassed the $1 billion of in-force premiums milestone.

As the casualty insurance-linked securities (ILS) market continues to expand, rating agency AM Best has indicated that market participants will need to remain focused on ensuring that both underwriting discipline and risk transparency develop simultaneously in order to keep pace with investor demand.