Third-party reinsurance capital news

Hiscox CFO Paul Cooper said this morning during an analyst call that while growth into property catastrophe reinsurance may slow for the group in 2026, given the rate environment, the company may elect to cede more to third-party capital as it continues to be able to attract investors.

Following a strong first-half of the year in which it raised new capital from investors Hiscox ILS, the insurance-linked securities (ILS) investment focused arm of Hiscox Group, saw its ILS assets under management dip to $1.3 billion in the third-quarter after planned returns of capital to its ongoing investors.

US-headquartered insurance holding company W. R. Berkley Corporation has continued to expand its use of its Lifson Re collateralized reinsurance sidecar through the third quarter of 2025, with written premiums ceded to the sidecar rising 53% year-on-year to $482 million, the highest level the company has recorded to date.

Having made its insurance-linked securities (ILS) grant scheme more restrictive back in 2023, to only offer the grant to catastrophe bonds or ILS covering regional risks from Asia Pacific, Singapore is reversing that move and expanding the ILS grant offering once again to cover cat bond risks from other locations around the globe, it appears.

The expansion of catastrophe bond and insurance-linked securities (ILS) market activity in 2025 is driving higher earnings for bankers and brokers, with Aon reporting today that the third-quarter of 2025 saw its ILS business experiencing “significant growth” in revenue terms.

Speaking during RenaissanceRe’s Q3 2025 earnings call today, Kevin J. O’Donnell, President and Chief Executive Officer of the firm suggested that third-party capital is not likely to be the primary driver of pricing in 2026, adding that pricing in 2026 will be driven more by reinsurers’ comfort with return levels in the property catastrophe segment.

RenaissanceRe, the global reinsurance company and third-party capital manager, has reported a 24.1% rise year-on-year in fee income earned from its reinsurance joint-venture vehicles and insurance-linked securities (ILS) funds in the third-quarter of 2025.

Our latest video features the second panel discussion of the day at Artemis London 2025, a session focused on the catastrophe bond market segment, from our fourth catastrophe bond and insurance-linked securities (ILS) conference in the City of London, UK, held on September 2nd 2025.

Some 67% of insurers and reinsurers surveyed by investment giant BlackRock said they intend to utilise reinsurance sidecars over the coming year, while 54% expect to increase their use of third-party capital sources, underscoring the continued push to more efficient management of capital in the sector.

Speaking today during Aon’s Navigating Market Cycles panel, Rachel Turk, Chief Underwriting Officer at Lloyd’s of London, the specialist insurance and reinsurance marketplace, said that the market’s London Bridge 2 PCC insurance-linked securities (ILS) structure has become an attractive place for third-party capital.