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ILS & Cat Bond Daily — May 21, 2026

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Insurance-Linked Securities ·Catastrophe Bonds

Mangrove secures upsized $111m of reinsurance from debut Buttonwood Re cat bond

Mangrove Property Insurance has obtained $111 million in named storm reinsurance through its inaugural Buttonwood Re Ltd. (Series 2026-1) catastrophe bond, with all tranches pricing at or below the lower end of initial guidance. This upsized issuance underscores strong investor demand in the ILS market, reflecting favorable pricing conditions and enhancing Mangrove's capacity to manage storm-related risks effectively.

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Insurance-Linked Securities ·Catastrophe Bonds

Willis, Global Parametrics deliver parametric rainfall payout to coffee farmers in Vietnam

Willis and Global Parametrics have executed the first parametric rainfall payout to coffee farmers in Vietnam, facilitated through a policy with Bao Minh Insurance Corporation, addressing the financial impact of excessive rainfall. This transaction highlights the growing adoption of parametric insurance solutions in agriculture, potentially enhancing market resilience and providing a model for future ILS structures. The successful implementation may influence pricing dynamics and risk assessment in the reinsurance sector, particularly for agricultural and climate-related risks.

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Insurance-Linked Securities ·Catastrophe Bonds

Northern Re adds Head of Data Science to enhance modelling and analytical capabilities

Northern Re has appointed Tarek Frahi as Head of Data Science to strengthen its modelling and analytical capabilities, which is critical for optimizing risk assessment and pricing in its long-tail casualty underwriting business. This strategic enhancement aims to improve the company's competitive positioning in the collateralized reinsurance market, potentially impacting returns for investors in insurance-linked securities (ILS). Enhanced data analytics could lead to more accurate pricing and risk evaluation, which are vital for maintaining investor confidence and achieving favorable underwriting performance.

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Also This Day

NOAA forecasts 55% chance of below-normal Atlantic hurricane season, as El Nino nears

NOAA projects a 55% likelihood of below-normal Atlantic hurricane activity for the 2026 season, driven by an anticipated 82% chance of El Niño conditions developing between May and July. This forecast is significant for the reinsurance and ILS markets as it suggests potential reductions in catastrophe-related claims, impacting pricing and risk assessments for insurers and investors. The moderation of tropical activity could influence underwriting strategies and investment decisions in catastrophe bonds and related securities.

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Insurance-Linked Securities ·Catastrophe Bonds

SCOR secures $75m Atlas Capital 2026-1 cat bond priced at low-end, bolstering retrocession

SCOR has successfully issued a $75 million multi-peril fully-collateralized retrocession catastrophe bond, Atlas Capital DAC (Series 2026-1), priced at the low end of initial guidance. This transaction enhances SCOR's retrocession capacity, reflecting ongoing demand for ILS solutions in a competitive market environment. The pricing details indicate a cautious approach from investors, which may influence future cat bond pricing dynamics.

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Insurance-Linked Securities ·Reinsurance

Gallagher Securities report finds institutional investors increasing exposure to insurance-linked assets

Gallagher Securities reports a significant uptick in institutional investor interest in insurance-linked assets, with 60% of surveyed investors prioritizing scalable, transparent structures that enhance direct participation in underwriting performance. This trend underscores a growing confidence in the ILS market, suggesting potential for increased capital inflows and innovative product development, which may enhance pricing dynamics and risk transfer efficiency in the sector.

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Insurance-Linked Securities ·Catastrophe Bonds

ILS / non-traditional capital a “critical extension” of traditional reinsurance: Bolding, Gallagher Securities

Jason Bolding, CEO of Gallagher Securities, emphasized that insurance-linked securities (ILS) and non-traditional capital have become essential components of reinsurance strategies, shifting the focus from whether to engage with these instruments to how to effectively integrate them into capital models. This evolution underscores the growing importance of ILS in achieving medium to long-term strategic objectives within the reinsurance market, highlighting a trend towards diversification and enhanced risk management.

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Insurance-Linked Securities ·Catastrophe Bonds

Patriot Select secures $310m of catastrophe reinsurance, with $145m for second events

Patriot Select Property and Casualty Insurance Company has secured $310 million in catastrophe reinsurance for its 2026 renewal, comprising $220 million from the private market and $90 million from the Florida Hurricane Catastrophe Fund (FHCF), with an additional $145 million specifically allocated for second events. This transaction highlights the improving market conditions and stabilization in the reinsurance sector, which may influence pricing dynamics and capacity availability for ILS investors and underwriters. The strategic allocation for second events underscores the growing recognition of multi-event risk in catastrophe modeling and underwriting practices.

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Insurance-Linked Securities ·Catastrophe Bonds

60% of institutional investors intend to increase ILS allocations: Gallagher Securities survey

A Gallagher Securities survey reveals that 60% of institutional investors plan to increase their allocations to insurance-linked securities (ILS), particularly catastrophe bonds. This trend underscores a growing confidence in ILS as a viable investment class, potentially driving demand and pricing dynamics in the reinsurance market. The shift reflects an increasing appetite for diversification and yield in a low-interest-rate environment.

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Insurance-Linked Securities ·Catastrophe Bonds

NCDEX launches India’s first exchange-traded parametric weather derivative RAINMUMBAI

The National Commodity and Derivatives Exchange (NCDEX) has launched India's first exchange-traded parametric weather derivative, RAINMUMBAI, designed to mitigate financial risks associated with rainfall variability in Mumbai. This product represents a significant advancement in the Indian weather risk market, potentially enhancing liquidity and pricing efficiency for investors in insurance-linked securities (ILS) and reinsurance, as it offers a new tool for managing climate-related exposures. The introduction of RAINMUMBAI could attract institutional interest, particularly from entities seeking to diversify their portfolios with innovative risk transfer solutions.

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