Despite the softening of the reinsurance market seen at the January renewals, 2026 is still expected to be among the more profitable years in reinsurance, as still higher attachment points and improved portfolio quality will support returns, according to Euler ILS Partners, the Swiss specialist insurance-linked securities investment manager. In a recent report, Euler ILS Partners commented on the state of the market as 2026 begins, for both catastrophe bonds and reinsurance investments. In catastrophe bonds, the market grew strongly in 2025, while the average coupon as calculated by Euler ILS Partners fell by 2.9% year-on-year to 7.84%. Average yield to maturity in the catastrophe bond market is seen at 6.47% as of the end of 2025 by Euler ILS Partners, a decline of 3.4%. “Sustained issuer appetite and investor demand” are fuelling the growth of the catastrophe bond market, Euler ILS Partners notes.