Catastrophe bond news

There is a sixth transaction in the Acorn Re parametric earthquake catastrophe bonds from global reinsurance firm Hannover Re in the market, with this Acorn Re Ltd. (Series 2025-1) issuance currently offering $200m of notes to cat bond investors, Artemis has learned.

Continued strong seasonality lifted the average 2025 year-to-date return of UCITS catastrophe bond investment funds to 7.25% by September 26th, according to the latest data from the Plenum CAT Bond UCITS Fund Indices.

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.