Retrocession news

Hannover Re has continued to expand its collateralised fronting business this year, growing it 10% so far in 2026 according to executives from the company. While we’ve also learned that under its Hannover Re Capital Partners unit two insurance-linked securities fund strategies are planned for launch.

Hamilton Insurance Group has returned to renew its catastrophe bond and we’re told by sources is looking to upsize on the protection it provides, seeking $250 million or more in collateralized multi-peril retrocessional reinsurance from an Easton Re Ltd. (Series 2027-1) transaction.

Franklin Templeton Investment Solutions, the hedge fund-focused arm of the global asset manager, has moderated its stance on the catastrophe bonds asset class slightly from ‘strongly overweight’ to ‘overweight’ for Q4 2026, which in turn has led the firm to shift its stance on the insurance-linked securities market to ‘neutral’.

Hannover Re Capital Partners, the Bermuda-based insurance-linked securities (ILS) platform established by global reinsurance firm Hannover Re, is continuing to expand its activities on the island, with new fund infrastructure established to support ILS investment options for clients.

The Stone Ridge High Yield Reinsurance Risk Premium Fund, the main catastrophe bond focused strategy operated by Stone Ridge, has reached a milestone of $5 billion in assets under management, while the investment manager’s AUM across its mutual catastrophe bond, insurance-linked securities and reinsurance funds now sits around $7.6 billion.

Insurance-linked securities investment fund strategies, across catastrophe bonds and private ILS, saw returns accelerating in August 2026, as the average ILS fund performance reached 1.39% and cat bond funds had a particularly strong month, latest data from the ILS Advisers Fund Index shows.

Property aggregate excess-of-loss (XoL) capacity has rebounded strongly driven by a 50% increase in traded limits, according to reinsurance broker Marsh Re, revealing that nearly 40% of buyers now integrate frequency protection into their XoL strategies, up from just over a quarter two years ago.

Arch Re, the global reinsurance arm of Arch Capital group, has promoted Christian Roberts as its new Head of ILS and hired Cyril Neyme as an ILS Portfolio Manager, with both of these moves happening in July this year.

Over the last year and through the record-levels of issuance in 2026 so far, the catastrophe bond market’s outstanding exposure has shifted further towards indemnity triggers and per-occurrence coverage, as preference for these types of deals continues to rise, both on the sponsor and investor side.

Retrocession is back in fashion as market conditions evolve across reinsurance and rating agency S&P believes retro buying is set for a comeback, as reinsurers recognise favourable pricing and conditions for protection, while looking to manage their catastrophe limits in a softening market.