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Cat bonds were a key supply-side driver at 1 January 2025. -
Investment in the space comes mainly from the cat bond market, Gallagher Re said.
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The broker anticipates strengthening investor demand for collateralised re.
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Over-subscriptions have been evident on well-priced US cat treaties.
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Increased reinsurance capacity was more than sufficient to meet continued growth in global demand.
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The broker estimated ILS capital has reached $107bn.
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Overall, reinsurers accepted that rate cuts were still leaving them with strong margins.
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The firm said it benefited from favourable retro market conditions.
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Former ILS investors who left the space have looked again and re-allocated.
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The association’s Hurricane Beryl net loss stood at $455mn as of 30 September.
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The reinsurer is planning to drop its cession rate from 40% to 30%-35%.
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Many in the ILS sector are bullish on Milton losses falling at the lower end of earnings impacts.
