Insurance
Home›Insurance›Reinsurance›ILW demand peaks at mid-year renewals as cat bonds rea…
ILW demand peaks at mid-year renewals as cat bonds ready for Q4
SCOR Investment Partners expects Q4 primary catastrophe bond issuance to be very active, with market views suggesting it could challenge the prior full-year record of $25.0 billion.
Demand for industry-loss warranty protection built through Q2 2026, peaking around the mid-year reinsurance renewals, according to a commentary from SCOR Investment Partners. The firm linked the usual mid-year pickup to insurers and reinsurers calibrating and expanding catastrophe and retrocessional portfolios ahead of peak North Atlantic wind and hurricane season.
SCOR Investment Partners said June and July renewals showed significant interest in ILW coverage for US hurricanes and US earthquakes. It also noted that premium rates were flat on average versus the start of the year, with no changes seen within terms and conditions.
On the private reinsurance side, SCOR Investment Partners reported that US June and July renewals brought a 15.0% to 20.0% year-on-year reduction in premium rates, citing abundant capacity available. Artemis data cited in the commentary showed nearly $11.33 billion of catastrophe bond issuance across Rule 144A and private cat bond transactions in Q2 2026, lifting total H1 2026 volume to about $18.0 billion and setting a new half-year record above $17.0 billion in H1 2025.
SCOR Investment Partners said catastrophe bond activity is expected to quiet during Q3 and likely not reopen until late September or early October. Looking to Q4, it pointed to market expectations for a very active primary market, which it said could help the sector break the prior full-year cat bond issuance record of $25.0 billion.