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RenaissanceRe has closed a $500m Mona Lisa Re Ltd catastrophe bond, its largest single issuance of 2026, providing multi-year protection against US named storms and earthquakes. The deal priced at the tight end of guidance, reflecting continued strong ILS investor demand despite above-average Atlantic hurricane forecasts from NOAA.
Aon Securities and Nephila Capital have settled what they describe as the first catastrophe bond transaction to use on-chain tokenisation for both issuance and investor settlement. The pilot used a permissioned Ethereum layer-2 for the $50m deal, cutting settlement time from T+5 to same-day and reducing administrative costs by an estimated 30%.
Munich Re reported a Q1 2026 combined ratio of 88.4%, ahead of its full-year target, as natural catastrophe losses came in at €1.2bn against a €1.8bn quarterly budget. The group raised its full-year net income guidance to €5.5bn, citing sustained reinsurance pricing discipline and reduced secondary peril activity versus the prior year.
Pillar Capital Management has upsized its Matterhorn Re collateralised reinsurance sidecar to $400m ahead of the June 1 Florida renewals, up from $250m at January 1. The expansion reflects continued institutional appetite for ILS collateral as primary insurance rates in cat-exposed US states remain at multi-cycle highs.
The Bermuda Monetary Authority has published a consultation paper outlining a proposed capital adequacy framework for reinsurers using tokenised assets as collateral. The framework would require a 15–25% haircut on digital asset positions relative to traditional cash and treasuries, with implementation targeted for Q1 2027 pending industry feedback.
Swiss Re's latest sigma estimate puts Q1 2026 global insured catastrophe losses at $38bn, driven by the January California wildfires ($22bn) and severe convective storms across the US Midwest. The figure is 40% above the 10-year average, though Swiss Re notes primary insurance coverage gaps mean economic losses were nearly triple the insured total.
