While catastrophe bonds remain an attractive source of diversifying returns, investors focusing solely on public markets are overlooking a massive portion of the market. According to Cahal Doris, CIO of Private ILS at Twelve Securis, combining liquid cat bonds with selectively sourced private ILS is key to unlocking broader diversification and improving long-term, risk-adjusted returns.
Speaking to Artemis ahead of the launch of our Q2 2026 catastrophe bond and related insurance-linked securities (ILS) market report, Doris highlighted that while the cat bond market has matured into a premier institutional asset class, it still only represents a fraction of the broader ILS space.
“Investors able to access both public and private ILS markets may benefit from a broader opportunity set, additional diversification sources and relative value opportunities that are often unavailable through cat bonds alone. While private ILS involves reduced liquidity, its generally short-duration nature can allow investors to seek enhanced risk-adjusted returns without necessarily accepting the multi-year capital lock-ups associated with many other private market strategies,” Doris explained.
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