ILS market insights: July 2025

The first half of 2025 has reaffirmed the Insurance-Linked Securities (ILS) market’s status as a compelling and resilient asset class. Amid a backdrop of macroeconomic uncertainty and evolving risk dynamics, catastrophe bonds have continued to deliver attractive yields, low volatility, and low correlation to traditional markets.

With over USD 17 billion in notional issuance across nearly 60 transactions, 2025 has already positioned itself as one of the most active periods in the market’s history. Investor demand has remained robust, supported by elevated collateral yields, a healthy maturity pipeline, and a growing appetite for diversified risk exposures – including higher-frequency and multi-event structures, as well as new sponsors and perils.

This report provides a detailed look at market performance, pricing trends, and catastrophe activity, as well as insights into the Swiss Re Cat Bond Indices. This mid-year update aims to equip sponsors and investors with the data, context, and analysis needed to navigate the remainder of 2025 and beyond.