Zurich Insurance Group has returned to the catastrophe bond market with a $150 million transaction providing multi-year protection against US named storms and earthquakes.
The deal, Turicum Re 2026-1, is a three-year catastrophe bond that Zurich said will add flexibility to its reinsurance protection as part of a diversified natural catastrophe risk strategy. The bond is structured on a per-occurrence basis with an indemnity trigger, aligning recoveries closely with Zurich's own loss experience.
Turicum Re is Zurich's first sponsored cat bond since Lakeside Re III, which was issued in December 2012 for a three-year term, marking a return to the insurance-linked securities (ILS) market after more than a decade away.
"Turicum Re enables Zurich to reestablish its presence and reputation in the growing and important ILS market," said Paolo Mantero, head of group reinsurance at Zurich. "Insurance-linked securities are an established and strategic source of reinsurance capacity that can provide additional flexibility and cost efficiency, complementing Zurich's traditional reinsurance relationships."
The Turicum Re 2026-1 notes provide Zurich American Insurance Company with fully collaterized, multi-year reinsurance protection against losses from US named storms and earthquakes.
Zurich said the strength and quality of its property portfolio helped make the transaction attractive to investors, allowing it to close at the target capacity and below initial price guidance.
The bond comes as the ILS and catastrophe bond market is experiencing record activity. Aon's latest annual ILS report found that catastrophe bond issuance reached more than $21.7 billion in the 12 months to June 30, 2025, the most active period in the market's history, with outstanding cat bond volume climbing to about $55 billion. Swiss Re has since estimated that overall ILS issuance hit a record $24.7 billion in 2025, driven by strong fourth-quarter activity.
Despite elevated natural catastrophe losses, investor appetite has remained solid, supported by attractive risk-adjusted yields and relatively limited impairment of cat bond structures in recent seasons. Fitch Ratings has noted that ILS capital and cat bond issuance both hit record levels in 2025 and has projected continued growth in 2026 as sponsors seek additional capacity and investors look for diversifying returns.
Zurich is positioning Turicum Re as a complementary source of capacity within a broader catastrophe reinsurance program that blends traditional treaties with alternative capital.
The group has emphasized centralized reinsurance purchasing and capital management as key elements of its natural catastrophe strategy, supported by strong capitalization and ratings. Underwriting entities of Zurich Insurance Group currently hold Best’s Financial Strength Ratings of A+ (Superior) and A (Excellent).
Zurich’s return to the ILS market follows a series of sizable cat bond placements by US property writers and intermediaries, underscoring the role of capital markets as a mainstream reinsurance source.
Managing general underwriter SageSure Holdings LLC and member-owned SureChoice Underwriters Reciprocal Exchange recently closed a $670 million Gateway Re Ltd. Series 2026-1 catastrophe bond, the largest issuance to date from the Gateway Re program. The new notes build on a $520 million Gateway Re 2025-1 transaction that initially provided named-storm coverage and broaden the peril base to include earthquakes, severe thunderstorms, winter storms, and wildfires across all eligible states for SURE, Elevate Reciprocal Exchange, and SafeChoice Insurance Co.
Swiss Re Capital Markets, meanwhile, structured and placed a $400 million Topanga Re 2025-1 cat bond on behalf of Farmers Insurance Group in December 2025, further illustrating large US carriers’ willingness to use repeat ILS programs to secure multi-year catastrophe capacity.
Zurich’s move back into ILS after more than a decade suggests that large global groups that previously relied almost entirely on traditional reinsurance now see clearer strategic value in diversifying their sources of catastrophe protection.
