Cat bond news

There is a growing opportunity for further use of catastrophe bonds and insurance-linked securities (ILS) in Latin America, with Brazil’s first ILS deal recently setting a positive example, Fitch Ratings has explained.

Here are the ten most popular news articles, week ending October 5th 2025, covering catastrophe bonds, ILS, reinsurance capital and related risk transfer topics. To ensure you never miss a thing subscribe to the weekly Artemis email newsletter updates or get our email alerts for every article we publish.

As the insurance-linked securities (ILS) market continues to grow, its role in addressing the widening protection gap is coming into sharper focus, with Holly Turner, Climate Specialist at Schroders Capital, suggesting that every ILS transaction can help address this goal.

The Texas Windstorm Insurance Association (TWIA) is now projecting that the amount of reinsurance and catastrophe bonds it may require for the 2026 wind season could be roughly 46% lower than this year’s program, with $2.3 billion of limit the current forecast.

According to a recent commentary from Man Group, the global alternative and active investment manager, the rising frequency of rapid intensification is posing new challenges for catastrophe bond investors.

AM Best has updated its rating outlooks for RenaissanceRe and its subsidiaries, now seeing the reinsurance firm’s prospects as positive, rather than stable, citing improved performance, a more balanced business due to diversification, and of course the firm’s ability to attract third-party capital through joint-ventures and ILS partnerships.

The overall yield of the catastrophe bond market declined further in September 2025, as seasonal spread tightening continued to be the major factor affecting that metric, with insurance risk spreads, or the cat bond market discount margin, now back at levels seen around the same stage of the year in 2021.

As the catastrophe bond market continues to expand, the next phase of growth won’t come from standardization alone. Digitization, streamlining data and deal flow, will be crucial for handling scale while preserving sponsor flexibility, according to Tanja Wrosch, Head of Cat Bond Portfolio Management at Twelve Securis.

Kiatnakin Phatra Asset Management (KKP Asset Management), a capital markets investment firm based in Thailand and part of the Kiatnakin Phatra Financial Group, has launched two catastrophe bond strategies for the Thai domestic market, with both set to serve as feeders to the Twelve Cat Bond Fund, a Twelve Securis strategy.

CyberCube, a specialist modelling firm for cyber risks and exposures that has also been the third-party modelling agent for a number of the cyber catastrophe bonds that have been issued so far, has announced a significant more than $180 million investment in the company to support its long-term growth ambitions.