With investor sentiment across insurance-linked securities (ILS) remaining highly constructive, ILS manager Twelve Securis is aiming to preserve the resilience and clarity of its portfolios throughout 2026, while continuing to deliver stable, attractive returns within the market, executives from the firm told Artemis.
With 2025 being a substantial year for the ILS market, we spoke with Urs Ramseier, CEO, and Etienne Schwartz, CIO Liquid Strategies, Twelve Securis, who outlined the firm’s priorities and areas of focus for 2026.
According to Ramseier, the ILS manager is looking to mainly focus on disciplined risk selection, structural integrity, and consistency in portfolio construction throughout 2026.
“We will continue to prioritise transactions with clearly defined perils, transparent structures, and attractive risk-reward dynamics,” the CEO told Artemis.
He continued: “Across both cat bonds and private ILS, our approach emphasises selective expansion into segments where pricing and terms remain robust.”
Ramseier also explained that Twelve Securis aims to capitalize on the robust performance observed in recent years by adopting a conservative stance, enhancing analytical frameworks for evolving secondary perils, and ensuring that innovations, whether in parametrics, modelling, or contract structures, translate into tangible value for investors.
“Our overarching objective is to preserve the resilience and clarity of our portfolios while continuing to deliver stable, attractive returns in a maturing and increasingly sophisticated ILS landscape,” the CEO added.
Moving forward, Schwartz outlined that investor sentiment across the ILS landscape remains highly constructive.
“The asset class has delivered resilient performance through recent catastrophe events, reinforcing confidence in its structural robustness, transparency, and alignment of interests,” Schwartz explained.
According to Schwartz the tightening in cat bond spreads has not discouraged institutional involvement with the CIO noting that the firm is observing a subtle shift within portfolios.
“Some investors are reallocating from cat bonds into private reinsurance to capture incremental value, rather than withdrawing from the sector. Elevated risk-free rates also provide a rational pricing floor, supporting disciplined market structures.”
Concluding: “Overall, we expect demand to remain robust into 2026, even if some investors normalise their ILS allocations back to neutral after the unusually elevated positioning of the past two years when spreads were exceptionally high.
“Ultimately, the non-correlated nature of ILS, combined with spread levels that remain attractive relative to IG and high yield markets, continues to offer a compelling value proposition.”
Also read: Catastrophe bond market poised to carry record momentum into 2026: Schwartz, Twelve Securis
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