Market Brief
State Farm's $1.5bn Cat Bond Issuance
Tuesday, May 26, 2026
Market Memo
State Farm has issued a $1.5 billion catastrophe bond through Merna Re Enterprise Ltd. (Series 2026-1), marking a significant move in the cat bond market and reflecting strong investor demand for insurance-linked securities (ILS). Concurrently, Allstate has projected $870 million in catastrophe losses for April 2026, primarily due to severe weather events, which may impact reinsurance pricing and capacity.
Today's developments highlight a continued trend of significant capital movements in the ILS market, following recent large transactions. The partnership between Shory and OrbitWorks also indicates a growing focus on innovative solutions in the reinsurance sector, aligning with the week's emphasis on technological advancements in risk assessment.