Insurance-linked investments

Buyers and sellers are energised by the opportunity to unlock long-tail casualty risk through insurance-linked securities (ILS), with this momentum driving a broader transformation in the legacy reinsurance market, shifting it from one-off liability transfers toward long-term, strategic partnerships, according to Howden Re.

As insurance and reinsurance markets continue to deliver competitive returns, Lloyd’s of London is emerging as a focal point for investors seeking diversification and growth. However, alongside the surge in appetite for the market, particularly for exposure to fast-growing new syndicates, comes a need for careful consideration of the additional capital those businesses may require, […]

Nephila Capital, one of the longest-standing and largest insurance-linked securities (ILS) managers, has been approved in principle to launch Lloyd’s Syndicate 2359, its third syndicate and its first in the market to have a pure property catastrophe risk and returns focus for specialised Lloyd’s investors and capital allocators, Artemis can report.

Private catastrophe bond issuance in 2025 has now surpassed the full-year total from 2024, as three new series of notes issued by the Eclipse Re Ltd. transformer vehicle have come to light and taken this year’s figure to over $465 million.

Ariel Re is to separate out risk classes it underwrites by aligning its established Syndicate 1910 with the Bermuda ILS peer group through adopting a pure property catastrophe reinsurance focus for the vehicle, while setting up a new syndicate for the rest, the company said today.

Seasonal spread tightening effects accelerated in August 2025 driving the overall yield of the catastrophe bond market down approximately 0.60% in the month to 10.22%, as the insurance risk spread, or discount margin, compressed due to the hurricane season.

German reinsurer Deutsche Rückversicherung AG (Deutsche Rück) is exploring potential risk absorbers and additional vehicles, while also keeping an open mind towards alternative capital instruments, according to Chief Executive Officer (CEO) Achim Bosch.

Secondary liquidity and standardized deal processes are essential factors that will help support the ongoing growth of the catastrophe bond and insurance-linked securities (ILS) market, according to Jean-Louis Monnier, Head of ILS at Swiss Re Capital Markets.

Having begun the process to establish a Bermuda based insurance-linked securities (ILS) platform named Hannover Re Capital Partners, global reinsurance firm Hannover Re is having “very positive” investor conversations so far, Executive Board Member Silke Sehm said today in Monte Carlo.

CatX, the digital catastrophe and parametric risk exchange company, has merged with fellow Bermuda-based risk software company Cactus and launched the Cactus Risk Studio to enable clients to leverage artificial intelligence (AI) to power risk decisions and risk transfer.