Catastrophe bond pricing has fallen by more than 20% year-on-year as of early March 2026, according to Gallagher Securities, with the company explaining that the softer pricing environment means that investors have been willing to allocate capital to riskier tranches of cat bond notes.
The investment banking and insurance-linked securities arm of reinsurance broker Gallagher Re explains that catastrophe bond multiples now stand around 30% lower than two years ago as of late in the first-quarter of 2026, a data point reflected in our charts tracking cat bond multiples-at-market by year and quarter.
As the reinsurance and ILS market have softened, investors have become more willing to support riskier layers and tranches of cat bond notes, as well as certain frequency coverage structures.
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