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Artex warns price adequacy is key for ILS growth into 2027
Artex Capital Solutions CEO Kathleen Faries said cyber demand has not yet met expectations and cited about $3.2 billion of incoming capital via London Bridge 2 in 2026.
Artemis reports that as the insurance-linked securities, or ILS, market expands into casualty, specialty, and cyber, Artex Capital Solutions CEO Kathleen Faries said maintaining price adequacy is a “critical boundary” for keeping alternative capital committed.
Speaking at the 2026 Monte Carlo Rendez-Vous, Faries said cyber has been closely watched because investors are evaluating opportunity size and returns, but demand so far has not materialized as expected. She added that data centers are emerging as a major opportunity, while the attractiveness for alternative capital still depends on a supply, demand, and return equation, according to Artemis.
On specialty lines, Artemis reports Faries pointed to London Bridge 2 in the UK, describing it as a vehicle that delivers capital supporting Lloyd’s Syndicates. She said Artex manages the vehicle, with interest robust in 2026, including 40 segregated accounts and about $3.2 billion of capital coming in through the platform, per Artemis.
Faries also warned that investors could redirect capital if pricing softens too far. Artemis reports she said Artex is optimistic about 2027, while noting the need to monitor price adequacy and softening during the final stretch of 2026 to avoid dipping below a threshold that would cause investors to reconsider deploying capital.