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Hiscox Capital Partners grows ILS AUM amid record cat bond issuance
The ILS investor said it raised overall AUM nearly 93% in the first half of 2026 to $2.9 billion while the catastrophe bond market logged about $18 billion of issuance.
Hiscox Capital Partners is leaning on long-running reinsurance relationships to manage a rapid influx of capital into the insurance-linked securities, or ILS, market, amid record catastrophe bond issuance earlier in 2026, Artemis reports. Managing Principal Vincent Prabis said the firm treats catastrophe bonds within the same qualitative underwriting framework it applies to its traditional balance sheet business rather than handling them as standalone instruments.
Prabis said Hiscox Capital Partners, the Hiscox Re division focused on ILS investments and quota-share partnerships, grew its overall ILS assets under management by almost 93% in the first half of 2026 to $2.9 billion. He attributed the growth in part to continued record issuance and said the market is on track for another record year.
Artemis reports that Prabis described a focus on maintaining underwriting quality as the market grows, emphasizing that the firm has “skin in the game” and does not simply manage capital on behalf of third parties. He also pointed to the company’s history in the insurance risk and reinsurance businesses as part of what he sees as a natural evolution into ILS.
The article also notes that the catastrophe bond market opened 2026 with a record first half, with almost $18 billion of issuance, and that oversubscription can sometimes compress spreads and expand coverage terms. Prabis said Hiscox Capital Partners uses its scale to help secure favorable allocations as demand tightens in the market.