Casualty ILS news

Competitive insurance and reinsurance market conditions are spreading beyond just property risks, as there is “a lot of hungry and extremely naive capacity available,” Chubb CEO Evan Greenberg said today.

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.

As casualty sidecars continue to gain traction, rating agency AM Best has highlighted that clear exit mechanics, high-quality collateral, and transparent risk transfer are critical to lowering tail risk capital charges for sponsors, warning that uncertain exit terms or weak collateral can leave cedents holding unexpected residual risk.

Marsh clients are exploring greater use of third-party capital solutions, including sidecars for liability portfolios, as abundant reinsurance capacity and relatively benign catastrophe losses keep market conditions competitive ahead of the January 1 renewals, according to John Doyle, the firm’s President and Chief Executive Officer.

Casualty insurance-linked securities transactions are complex and require strong alignment, which makes finding strategic partners and understanding their motivations key, while at the same time given the complexity of arrangements such as casualty sidecars, realistic timelines are important, Philippe Trahan of Calidris Investment Partners said yesterday.

Strategic Risk Solutions, an independent provider of insurance, reinsurance and captive management and consulting services, suggests that casualty ILS will breakthrough when platforms offer dependable exit mechanisms providing investors entering longer-tail risk with greater certainty, by embedding capital finality from inception.

The diversity and size of the ILS investor base has never been larger, according to Cory Anger, Managing Director at Marsh Securities, who believes that the market remains extremely healthy, while emphasising the need to continue expanding investment opportunities further.

Executives at Howden Capital Markets & Advisory (HCMA) have indicated that as traditional casualty capacity remains constrained, casualty sidecars are becoming a genuine third pillar alongside traditional reinsurance and the balance-sheet, moving beyond being a specialty product for a select number of sophisticated investors.

Enstar, one of the largest legacy and run-off reinsurance specialists in the world, has recently begun fronting for capital providers including insurance-linked securities managers and sees this new offering a diversifying solution for its toolkit and one it intends to selectively develop further, Anguel Zaprianov explained to Artemis in a recent interview.

As asset-driven sidecars expand in the casualty market, focus is shifting from capital efficiency to risk management. Given this, Ledger Investing indicates that turning collateral into a second source of return requires market participants to underwrite the supporting asset portfolio with the same discipline as the liabilities.