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Cat bond issuance falls in first half, but new entrants tap market - Business Insurance Skip to content Register for free Search Search Log In Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Cat bond issuance falls in first half, but new entrants tap market by Matthew Lerner Agents and Brokers , Insurance-linked Securities , Reinsurance Aon , Arthur J. Gallagher & Co. , Howden , Marsh Jul 21, 2026 Catastrophe bond issuance fell in the first half of 2026 compared with the same period last year, but new buyers and investors continued to enter the market, data shows. In addition to long-time market participants, new cedents and investors accessed the capital markets to take advantage of favorable terms and returns, sources said. Guy Carpenter, the reinsurance brokerage arm of Marsh, Aon and Gallagher Re, a unit of Arthur J. Gallagher, reported first-half cat bond issuance of between $15.57 billion and $17.1 billion. Gallagher said its $15.57 billion estimate compares with $16.88 billion in the same period last year. Despite the decline, incorporating insurance-linked securities into reinsurance programs is much more common now than even a few years ago, executives said. “It has become a more mainstream-type product,” said Philipp Kusche, New York-based global co-head of ILS and chairman of Howden Capital Markets & Advisory Europe, a unit of Howden. “Five years ago, it took a lot of convincing for people to look at ILS. We’re now at a place where I think everybody has heard the story enough that it’s just another checkbox in their reinsurance strategy,” he said. The issue has moved from whether to access capital markets to how that capital will be used, said Jason Bolding, Juniper, Florida-based CEO of Gallagher Securities, the ILS division of Gallagher Re. “The questions now are, how much to use, where does it fit in the program, how can cat bonds improve pricing or duration or counterparty diversification and overall program efficiency,” Mr. Bolding said. “Sponsors are using the market as a deliberate part of their capital strategy.” The catastrophe bond market has also attracted investors due to its strong performance versus other investments, said Zach Breslin, New York-based capital markets leader for Lockton Re Capital Markets, a unit of Lockton. “Cat bonds are one of the best-performing fixed-income instruments when compared against things like high-yield bonds,” Mr. Breslin said. New cedents, primarily insurers and reinsurers, continue to access the market and are likely to become repeat customers, Mr. Kusche said. “We have seen more and more and more new sponsors come to the market over the last three years, and once they have done their first transactions, it’s quite natural for them to do a second one and to renew those,” he said. More than 75 new cat bond sponsors have issued since 2020, and most sponsors continue to issue additional cat bond capacity or renew existing coverage, said Cory Anger, a New York-based managing director at GC Securities, Guy Carpenter’s capital markets arm, in an email. The 75 new sponsors included 11 in the first half of 2026, Ms. Anger added. Sponsors are drawn by both the ability to diversify the capital base of reinsurance programs as well as the potential for more flexible terms, Mr. Bolding said. “Sponsors look at structures that address specific concerns like aggregate protections or multi-event covers,” he said. Sponsors are drawn by attractive pricing relative to competing solutions and the unique coverage aspects, such as providing solutions that other markets have stepped back from, including aggregate coverage, Ms. Anger said in the email. Another source of capital also creates more competition for reinsurance buyers, Mr. Breslin said. “The ability to diversify your counterparties and your sources of risk capital allows you to inject competitive tension into your overall buying, as cat bonds are a complement to traditional forms of capacity,” he said. 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