The year to 30th June 2025 has been the most active in insurance-linked securities history with alternative capital hitting approximately £90bn. Catastrophe bond issuance exceeded £15bn during the period while sidecar capacity increased to £13bn across property and casualty lines.

Richard Pennay, CEO of Aon Securities, said: “Driven by higher building costs, evolving weather trends and the push to close the protection gap, cedents are increasingly seeking coverage beyond what is available in the traditional reinsurance market.

“With the uncorrelated nature of catastrophe bonds, and investors achieving double digit returns, the space continues to demonstrate its value and outpace growth in other areas of the insurance industry.”