Insurance Linked Investments

Adoption of advanced technology and artificial intelligence are serving to expand addressable markets for the insurance and reinsurance industry, with digital infrastructure one example where data analytics are expected to help Aon access institutional sources of capital for its clients, CEO Greg Case explained today.

RenaissanceRe’s third-party capital and insurance-linked securities management unit Capital Partners is considered an “important source of resilience” for the company and a key differentiator, especially for clients that “value, scale, reliability and flexibility,” according to CEO Kevin O’Donnell.

For global re/insurance group Everest, the Mt. Logan Re third-party capital vehicle continues to build momentum throughout 2026, with its assets under management surpassing $2.6 billion, and according to Everest’s President and CEO, Jim Williamson, the vehicle continues to play an increasingly important role in the company’s capital model.

During the Markel Group first-quarter earnings call yesterday, Simon Wilson, CEO of Markel Insurance, said he is concerned about the competitive tendencies of certain MGA’s that are backed by sidecars and private capital, who he believes may be chasing US casualty risk pricing down in areas of the market where caution is warranted.

Northern Re, the collateralized reinsurance company that provides investors access to returns of its long-tail casualty underwriting business, has announced that it has selected Palantir Technologies as a core platform to support the continued development of its capital intelligence capabilities.

The Government of the United Kingdom through HM Treasury has now published its response to the July 2025 consultation on a more flexible and extended risk transformation regime, saying it will pass reforms through legislature to promote insurance-linked securities (ILS) innovation in the country and facilitate a wider range of transaction structures.

Nephila Capital’s insurance-linked securities (ILS) fund management revenues reported within parent Markel’s results rose by an impressive 59% year-on-year, to reach $40.5 million in the first-quarter of 2026.

RenaissanceRe reported a 209% increase in fee income earned from its range of reinsurance joint venture vehicles and insurance-linked securities structures in the first-quarter, while investors benefitted from meaningful income and opted to take profits after the strong performance of these strategies.

A recent survey of insurance-linked securities (ILS) investors conducted by reinsurance broker Gallagher Re and Gallagher Securities reveals a notable rise in market appetite for 2026. The findings indicate that a clear majority of both specialist and generalist allocators intend to expand their exposure to insurance-related assets over the next two years.

Whilst the casualty insurance-linked securities (ILS) space continues to emerge as a transformative capital source for long-tail risk, Yulia Bruskova argues that ILS investors in casualty risk deserve the same level of transparency in exposure and systemic risk understanding that natural catastrophe investors have long been receiving.