Cat bond news

Catastrophe bond issuance in 2025 has continued at record pace and already this year is on-track to be the second biggest ever for cat bond issuance, once the current pipeline has settled, with only a further $815 million required to break the annual market record as well, according to Artemis’ data.

New Zealand’s Natural Hazards Commission Toka Tū Ake (NHC), formerly known as New Zealand’s Earthquake Commission (EQC) Toka Tū Ake, has added more limit to its reinsurance tower, lifting the top by $1.15 billion for 2025, in a renewal securing $10.3 billion of cover for disaster losses in the country.

Ariel Re, the Bermuda headquartered global reinsurer, is back in the catastrophe bond market this time seeking to add wildfire as a covered peril, as it brings a new $125 million Titania Re Ltd. (Series 2025-1) transaction to build out its capital markets backed retrocessional reinsurance, Artemis can report.

Canopius Group, the global specialty insurance and reinsurance underwriter, has successfully secured a renewal and upsizing for its catastrophe bond, with the new Finca Re Ltd. (Series 2025-1) issuance priced to provide the targeted $125 million of protection at a spread fixed at the low-end of guidance, Artemis can report.

The California Earthquake Authority (CEA) has raised the target size for its latest catastrophe bond, with now between $300 million and $400 million of earthquake reinsurance limit sought from this Ursa Re II Ltd. (Series 2025-1) issuance, Artemis has learned.

Everest Re, the global reinsurer arm of Everest Group, is back in the catastrophe bond market with a two series issuance that seeks at least $450 million of collateralized retrocession split across four and five year terms, under Kilimanjaro II Re Ltd. (Series 2025-1) and Kilimanjaro II Re Ltd. (Series 2025-2) transactions.

Cyber insurance-linked securities (ILS) remain a promising but constrained avenue for risk transfer, with structural complexity, limited market depth, and investor uncertainty continuing to hinder broader adoption, according to insights shared during a recent S&P Global Ratings webinar on cyber insurance.

Centauri Insurance and Lilypad Insurance are the sponsors and beneficiaries of the recently completed $30 million Sailfish Re Ltd. (Koi Re – Series 2025-1) private catastrophe bond transaction, with the transaction providing the ceding companies a source of named storm reinsurance protection.

The Icosa Cat Bond Fund, the catastrophe bond fund strategy distributed by Icosa Investments, continued to grow in recent weeks and has now reached a new milestone of $500 million in assets under management (AUM).

Arbuthnot Latham, a UK based private banking, wealth and investment management specialist, has made its first allocation to a catastrophe bond fund after spending time analysing the asset class and gaining an appreciation for the relatively uncorrelated returns cat bonds can offer.