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Challenger Life says catastrophe bond holdings stayed benchmark-aligned in FY
As of June 30, 2026, Challenger valued its catastrophe bond investments at AU$735 million, up from AU$714 million at Dec. 31, 2025.
Challenger Life reported that its insurance-linked securities, which are predominantly catastrophe bonds, performed in line with their benchmark over the last year, according to Artemis.
The insurer said it uses the Plenum CAT Bond UCITS Fund Index as its benchmark, and it pointed to that alignment helping offset weakness in other parts of its alternatives portfolio after it previously reported outperformance for the six months to Dec. 31, 2025.
Challenger also said its catastrophe bond allocation remained the main ILS strategy, with its life settlements allocation fully wound down and its reinsurance sidecar investment reduced to an AU$3 million valuation by mid-2026.
In its full-year results, Challenger put the value of its catastrophe bond investments at AU$735 million as of June 30, 2026, up from AU$714 million at Dec. 31, 2025, and reported the total ILS and reinsurance portfolio rose from AU$725 million at Dec. 31, 2025 to AU$738 million at June 30, 2026.