Cat bond news

Speaking at the International Forum of Terrorism Risk (Re)Insurance Pools in Sydney, Australia today, Guy Carpenter’s Asia Pacific CEO, Tony Gallagher, has explained the importance of retrocession markets in supporting provision of terrorism reinsurance, highlighting catastrophe bonds as an important and growing mechanism.

A proposal has been published today calling for the establishment of a United States government backed reinsurance entity named US Re, which would be designed to assume natural catastrophe risks at the most extreme tail of the loss distribution, holding catastrophe risk at the lowest cost possible.

Catastrophe bond market issuance activity continues apace in 2026 and now two months of the first-quarter may see new records set for the amount of limit that comes to market, while Q1 issuance overall is destined to be the second highest ever, according to Artemis’ Deal Directory data.

Before the Atlantic hurricane season begins each year, forecasters release activity predictions that can have some influence on reinsurance pricing. However, a recent commentary from global alternative and active investment manager Man Group challenges the accuracy of these forecasts, questioning both their reliability and the benchmarks used to measure success.

Pool Re, the UK government backed mutual terrorism reinsurance firm, is back in the catastrophe bond market to sponsor its fourth terrorism catastrophe bond, with a Baltic PCC Limited (Series 2026-1) issuance being offered to investors, we understand.

Zenkyoren has returned to the catastrophe bond market to add to its capital market backed aggregate Japanese earthquake reinsurance protection, with an initial $100 million target for this new Nakama Re Pte. Ltd. (Series 2026-1) sponsorship, Artemis has learned.

Tokio Marine & Nichido Fire Insurance Co. Ltd. has now secured the targeted $100 million of multi-year collateralized Japanese earthquake reinsurance protection from its new Kizuna Re III Pte. Ltd. (Series 2026-1) catastrophe bond transaction, with the notes now priced at the mid-point of guidance, Artemis understands.

One of the insurance-linked securities (ILS) sponsored by financial guarantee and municipal bond specialist Build America Mutual Assurance Company has had its ratings revised to Positive from Stable by Kroll Bond Rating Agency (KBRA), while another two remain at Stable.

We’ve learned that US primary insurance giant State Farm has registered a new company structure in Bermuda under the Merna Re naming convention that has applied to all of its catastrophe bonds, suggesting the insurer may be set to return to the capital markets for more reinsurance.

A recent report from investment manager Neuberger Berman has indicated that industry index catastrophe bonds have outperformed the broader cat bond market with respect to realised losses and mark-to-market performance, following the occurrences of both hurricanes Ian and Irma.