The consultancy feels that the expected return may now be as much as 2 points higher than previously estimated, given the lack of losses and market price dynamics
Cat bond market expected return now 10.5% for 2025 | | | Cat bond market expected return rises, 2025 could be third double-digit year in a row: Lane Financial  Pricing in the catastrophe bond secondary market already implies a lighter hurricane season impact and actual losses are running below expected levels, which leads Lane Financial to estimate expected returns for the cat bond market of around 10.5% in 2025, giving the potential for this to be a third year of double-digit returns in a row. That's 2 points higher than estimated back after Q2. But Lane Financial also notes that ILS prices have risen and yields fallen, with data now suggesting "quarter-end rates-on-line are at their historic soft market lows." The consultancy forecasts that 2026 is likely to see lower returns, saying that "An early forecast of 2026 returns would therefore be for the mid-single digits." Read the full story. Other articles: | | | | | | Please share this with colleagues and friends if you think they would like to receive it.
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