In the initial half of 2026, Bermuda experienced considerable activity in new registrations for catastrophe bonds, insurance-linked securities (ILS), and other alternative or third-party reinsurance capital entities. Although the total number of registrations saw a minor dip from the previous year, the market's vitality was significantly enhanced by a notable influx of new sponsors making their debut in the catastrophe bond sector.
According to the latest figures from the Bermuda Monetary Authority (BMA), fifteen new company registrations in the first six months of 2026 have been definitively identified as having applications in insurance-linked securities or other forms of alternative reinsurance capital. While other company types were registered, which might serve as capital vehicles for life insurance, it remains unclear whether these are supported by institutional investors or function as sidecars for their sponsors.
Among the fifteen newly registered companies with clear ILS applications, twelve are classified as restricted special purpose insurers (SPIs). Ten of these Bermuda-registered SPIs in H1 2026 were established for the issuance of catastrophe bonds. One SPI was specifically created for a quota share or sidecar collaboration between the investor PGGM and PartnerRe, as previously reported. Another SPI serves as an issuer for mortgage insurance-linked notes, sponsored by MGIC.
A particularly noteworthy trend is that seven of the ten SPIs registered in Bermuda during the first half of the year for catastrophe bond issuances were for sponsors entering the market for the first time with their inaugural cat bond deals. The flexibility of the Bermuda SPI structure, which allows sponsors to issue multiple series of cat bond notes under a single program, means these structures are often reused. Consequently, while overall new registrations have remained relatively stable over time, the number of SPIs established for new sponsors has consistently grown. This signifies a thriving catastrophe bond market, increasing acceptance of cat bonds as an integral part of sponsors' reinsurance programs, and Bermuda's continued leadership in hosting cat bond issuance vehicles.
Beyond the twelve SPIs registered, Bermuda also saw three collateralized insurer registrations in the first half of 2026. All three of these collateralized insurer registrations are associated with casualty or longer-tailed ILS strategies. This area represents another growth segment within the ILS market, where Bermuda is likewise establishing a dominant position for company registrations. For instance, AXIS Capital established a new Monarch Point Re vehicle, and Everest Group launched Annapurna Re Ltd., its first casualty reinsurance sidecar. Clear Star Re, backed by Clear Haven Capital Management, also registered to target the casualty and longer-tailed ILS sector.
Despite a slight decrease in overall catastrophe bond and ILS-related company registrations in Bermuda for the first half of 2026 compared to recent years (though still higher than most years prior to 2020), the increasing adoption of the SPI as a multi-use cat bond program structure and the continuous entry of new market participants serve as strong indicators for future growth in the cat bond market. This also reinforces Bermuda's pivotal role as the preferred domicile for these structures. The latest data from the Bermuda Monetary Authority underscores the island's steadfast position as the foremost hub for all types of insurance-linked securities and for fostering the use of third-party capital in innovative structures that channel reinsurance-linked returns to institutional investors.
