Global alternative reinsurance capital keeps expanding rapidly, with investors targeting casualty risks alongside traditional catastrophe exposures, according to a new report from Artex Risk Solutions.

The report found that non-life alternative capital reached $135 billion at the end of 2025, one of the largest annual increases on record, while the global insurance-linked securities market — which Bermuda dominates — set multiple records, including $25.6 billion of new issuance.

Despite that growth, Artex said the most important development is the growing interest in casualty-linked structures.

“Today's ILS market is significantly broader and more resilient than just a few years ago when it was a single product, single peril market,” said Kathleen Faries, chief executive of Artex Capital Solutions.

Bermuda still dominates the global alternative capital market. Bermuda Monetary Authority data released in April showed the island accounted for about 92 per cent of global alternative capital. However, today's ILS market looks different than it did just a few years ago. expanding beyond what was once largely a property cat product dealing with risk from hurricanes and other natural disasters.

Now, the report noted, investors are looking into the even larger pool of opportunities presented by casualty, cyber and speciality risks, as well as hybrid structures.

Growth has been particularly strong in casualty lines, which are luring investors looking for longer-tail exposures and more diversification. In fact, long-tail capital activity roughly doubled over the past 12 months.

Private credit firms have quietly emerged as a major source of this capital as investors partner with reinsurers and managing general agents, although the $1.8 trillion private-credit market is not without its detractors. Recent research from Columbia Business School questioned whether some private-credit-related ratings may understate the risk, a conclusion challenged in turn by ratings agency KBRA.

The Artex report’s findings have already shown up in several recent developments in Bermuda's reinsurance market. In May, Everest launched Annapurna Re Ltd, a casualty reinsurance sidecar backed by about $600 million of third-party capital. That month, Hamilton Insurance also launched its own casualty-focused sidecar, while Gallagher Re noted that while cat bonds are still focused on property exposures, sidecars are offering investors the chance to participate in casualty underwriting risk.