ILS capital is “foundational” in reinsurance, grows to $144.5bn with 5-year CAGR 8.3%: Aon

Insurance-linked securities (ILS) capital is now “foundational” within the global reinsurance market according to Aon, with alternative sources of capital now accounting for $144.5 billion of sector funds, with that figure rising by $3.5 billion just in the second-quarter of 2026.

The latest insurance-linked securities market report from Aon Securities, the investment banking, structuring and broker-dealer unit of the company, highlights continued strong growth of catastrophe bonds and the broader ILS market, taking sector capital to a new high.

At the end of the first-quarter of 2026, Aon Securities had estimated alternative capital in reinsurance, so that deployed through insurance-linked securities and related collateralized structures, had reached $141 billion, having grown 4% since the end of 2025.

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