Insurance
Home›Insurance›Reinsurance›AM Best warns ILS investors may need to be more select…
AM Best warns ILS investors may need to be more selective
For 2026 year to date, catastrophe bond loss multiples are tracking at 2.4x, down from 2025’s 3.0x and 2024’s 3.71x.
AM Best said the tightening of catastrophe bond loss multiples in the first half of 2026 could push investors to become more selective ahead of the January 1 renewals, citing a mix of rising expected losses and softer returns, according to Artemis.
Artemis reported that the 144A property catastrophe bond weighted average loss multiple is tracking at 2.4x for 2026 to date, compared with 3.0x in 2025 and 3.71x in 2024.
AM Best also pointed to market mechanics, saying the weighted average spread fell 96 basis points while weighted average expected loss drifted higher by 30 basis points versus the cohort of cat bonds issued in the first half of 2025.
The agency added that the upward trend in expected losses reflects growth in exposure, higher modeled losses, and attachment points that have not risen at the same pace, as summarized by Artemis.