Cat bond news

Conditions in the Atlantic tropics now look more favourable than they did one month ago, which has led Tropical Storm Risk (TSR) to slightly increase its forecast for the 2025 Atlantic hurricane season, with activity levels now anticipated to be around 15% above normal.

The overall yield of the catastrophe bond market has begun its seasonal decline over the last month as the typical hurricane season spread tightening regime set in, according to cat bond fund manager Plenum Investments.

As per a new report from reinsurance broker Gallagher Re, artificial intelligence (AI) solutions can significantly contribute to reducing the time needed to create new catastrophe bond structures, which may ultimately enhance the confidence of prospective investors in the market.

According to Hiscox Chief Financial Officer (CFO) Paul Cooper, the majority of the $300 million of third-party capital raised by Hiscox ILS, the insurance-linked securities (ILS) investment focused arm of Hiscox Group, during the first half of 2025, has gone into the organisation’s property catastrophe exposed business.

At a Board meeting of the Texas Windstorm Insurance Association (TWIA) yesterday, members discussed the evolution of the property insurer of last resort’s funding under new state legislation, concluding that it may result in TWIA opting to reset and perhaps even redeem early some of its catastrophe bonds.

King Ridge Capital Advisors has examined how the 60/40 portfolio has come under increased scrutiny in recent years, notably regarding its capacity to hold when financial markets are in distress, while also highlighting how catastrophe bonds’ ability towards offering a source of truly uncorrelated returns is helping redefine portfolio resilience.

The catastrophe bond market delivered a total return of 1.47% in July 2025, as seasonality kicked in and drove what we’re told was one of the best performances for that month of any year in the history of the benchmark Swiss Re Global Cat Bond Index.

Bridging the widening natural catastrophe insurance protection gap is part of building macro financial resilience, which calls for innovative solutions such as catastrophe bonds, parametric instruments and regional risk pools, according to Lesetja Kganyago, Governor of the South African Reserve Bank.

We are delighted to announce four more expert speakers who are joining our upcoming catastrophe bond and insurance-linked securities (ILS) conference, Artemis London 2025. Held in London on September 2nd, there is now under one month to go until the event. Register to attend here.

Here are the ten most popular news articles, week ending August 3rd 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.