Bermuda sees surge in new cat bond issuers
Bermuda saw strong registration numbers of new catastrophe bond, insurance-linked security (ILS), and alternative or third-party reinsurance capital related entities in the first-half of 2026. The total number of registrations dropped slightly compared to the prior year, but first-time cat bond market entrants bolstered the total.
Cat Bond Registrations
According to the Bermuda Monetary Authority (BMA), 15 new company registrations in the first-half of 2026 can be clearly identified as having insurance-linked securities or other alternative reinsurance capital use-cases. Of these, 12 are restricted special purpose insurers (SPI).
10 of the SPI’s registered in Bermuda in H1 2026 have been established for catastrophe bond issuances. Notably, 7 of them were for first-time sponsors to enter the market with their debut cat bond deals.
First-Time Sponsors
The Bermuda SPI structure allows a sponsor to issue multiple series of cat bond notes under a single program, so they tend to be re-used multiple times as new sponsors become repeat sponsors. This has led to a rise in the number of SPI’s established for new sponsors over time.
This trend is a sign of the health of the catastrophe bond market and the broadening acceptance of cat bonds as part of sponsors’ reinsurance towers. It also highlights Bermuda’s continued dominance in providing a home for cat bond issuance vehicles.
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In addition to the 12 SPI’s, there were also 3 collateralized insurer registrations in the first-half of 2026. Two of these were casualty ILS or sidecar focused, from AXIS Capital and Everest Group.
Collateralized Insurer Registrations
The third collateralized insurer registered in H1 2026 is Clear Star Re, which is a structure backed in part by public and private credit focused asset manager Clear Haven Capital Management. All three of the collateralized insurer registrations are linked to casualty or longer-tailed type ILS strategies.
Bermuda’s position as the leading domicile for insurance-linked securities (ILS) and third-party capital within innovative structures has become ever-more important to the ILS community. The island’s regulators have responded appropriately through their support and prudent regulation of the structures the sector uses to do its business.
While total cat bond and ILS related company registration numbers in Bermuda are down for the first-half of 2026, the fact that the SPI became a multi-use cat bond program structure and more first-time market entrants are establishing them is a strong signal for future cat bond market growth.
As the ILS market continues to expand, Bermuda’s role in providing a home for cat bond issuance vehicles and listings on the Bermuda Stock Exchange will remain important. The island’s ability to attract new sponsors and support the growth of the ILS market will be key to its continued success.
