Insurance linked securities news, ILS news

Zurich has now secured its upsized target of $150 million of US named storm and earthquake reinsurance protection from its Turicum Re Ltd. (Series 2026-1) catastrophe bond, while the notes were priced to pay investors a spread roughly 7% below the mid-point of initial guidance, Artemis can report.

Parametrix is delighted to see expanded support from investors across the market to cover the tail risk of cloud outage events through Hannover Re’s successful renewal of its landmark parametric catastrophe bond, Cumulus Re (Series 2026-1), Sharon Haran, Managing Director of Parametrix Analytics, has said.

Franklin Templeton Investment Solutions, the hedge fund-focused arm of the global asset manager, has maintained its overweight conviction on the catastrophe bond asset class, with the firm citing that while yields and spreads have compressed compared to last year, the market remains healthy, with no evidence of weakening fundamentals.

Catastrophe bond pricing has fallen by more than 20% year-on-year as of early March 2026, according to Gallagher Securities, with the company explaining that the softer pricing environment means that investors have been willing to allocate capital to riskier tranches of cat bond notes.

Catastrophe bond funds in the UCITS format continued to expand their combined assets under management (AUM) through the first-quarter, surpassing the milestone $20 billion in February before declining slightly to just under $19.8 billion by the end of March 2026.

Equity analysts at Autonomous have indicated in a recent report that, with 2025 demonstrating significant growth in overall alternative capacity, 2026 is anticipated to experience moderate acceleration in the growth of third-party reinsurance capital.

Hannover Re’s Bermuda-domiciled transformer vehicle Kaith Re Ltd. has issued two new private catastrophe bonds, with a relatively small $4 million of notes issued across the LI Re (Series 2026-1) and LI Re (Series 2026-2) deals that will support securitized and collateralized reinsurance or retrocession arrangements.

Florida Peninsula Insurance Company is now looking to upsize on its initial target for named storm reinsurance through the Palm Re Ltd. (Series 2026-1) catastrophe bond issuance, with the firm now seeking to secure $225 million of protection while the price guidance has also been lowered, this publication can report.

The Florida Retirement System Pension Plan, which is administered by the Florida State Board of Administration, saw its allocation to insurance-linked securities funds and reinsurance strategies rising to make up 1% of total pension fund assets by the end of 2025, which equated to around $2.23 billion invested.

The Victory Pioneer CAT Bond Fund is approaching a new milestone of $2 billion in assets under management, while the combined AUM of the dedicated mutual and institutional insurance-linked securities (ILS) funds managed by the Pioneer Investments team is now over $5.2 billion.