ILS drives structural flexibility and softer pricing at July renewals: Gallagher Re

A wave of alternative capital, led by a record-setting surge in catastrophe bond issuance, helped reinsurers meet growing demand without pushing prices higher at the July 1 renewals, according to Gallagher Re, as cedants secured improved terms in property and specialty lines.

While traditional reinsurance capital reached a new high of $769 billion at year-end 2024, Gallagher Re’s latest 1st View report highlights the critical role of insurance-linked securities (ILS) and cat bonds in sustaining competitive pressure through mid-2025.

Issuance so far in 2025, across 144A cat bonds and private cat bonds we’ve tracked, sat at over $17.56 billion for the first half of 2025, which is very close to the Artemis-tracked annual record of $17.7 billion from full-year 2024, as new quarterly issuance records were set in both Q1 and Q2 this year.

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