subordinated insurance debt

In a webinar held this week, executives from specialist insurance-linked securities manager Plenum Investments explained that subordinated insurance debt is a rare category that is benefiting from volatility in government bond markets.

Fixed income financial services investment specialist Cohen & Company Inc. has announced that its controlled subsidiary, Cohen & Company Financial (Europe) S.A. (CCFESA), has raised €481.5 million for its PriDe IV subordinated insurance debt funds.

The subordinated insurance debt market is anticipated to outperform again in 2026, after a landmark year of Restricted Tier 1 (RT1) issuance in 2025. Plenum Investments has affirmed its optimistic outlook, believing that subordinated insurance debt will persist in providing enhanced risk-adjusted returns compared to the wider credit markets.

European insurers accelerated their use of subordinated debt markets in the first quarter of 2025, with issuance volumes hitting their highest Q1 level in 14 years, according to specialist insurance-linked securities (ILS) manager Twelve Securis.

The insurance sector is one of the most attractive in the universe of investment grade bonds right now, with manager Twelve Capital saying that its not just a good entry point, but also a good time to reposition fixed income portfolios towards insurance-linked assets.

Insurance-linked securities (ILS) investment manager Twelve Capital has adopted a defensive stance in the face of the market volatility caused by the financial market upheaval, although the company believes insurers are much better positioned than banks at this time.

The crisis being seen in banking sectors, most prominently with the failure of Silicon Valley Bank and sale of Credit Suisse to UBS, is not a crisis of the insurance sector, and there are no fundamentals to support the recent revaluation of insurance debt, Plenum Investments has stated.

Investing in insurance bonds looks even more compelling now against the broader macro-economic backdrop of volatile markets, according to Dinesh Pawar, Head of Insurance Bonds at specialist sector investment manager Twelve Capital.

Insurance bonds should not be ignored as a defensive investment opportunity with both yield and upside potential, according to Twelve Capital, with the manager believing that market dynamics have created a particularly attractive entry point for investors.

The resilience of the global insurance and reinsurance market through periods of protracted stress makes investing into insurance-linked debt a reliable component for any investors fixed income allocation, according to asset manager Twelve Capital.