Gallagher Securities, the capital markets and advisory arm of Arthur J. Gallagher & Co., reports rising institutional investor interest in insurance-related assets, with investors increasingly favoring structures that offer scalability, transparency and direct participation in underwriting performance.
In its latest report, Unlocking Insurance Capital: An Investor’s Perspective, Gallagher Securities said 60% of investors surveyed expected to increase allocations to insurance-related assets over the next two years.
The company noted that investors are paying more attention not only to the amount of capital available, but also to the structure and deployment of capital.
Cat bonds continue to attract the strongest interest, with 79% of respondents planning an allocation to the asset class, according to Gallagher Securities. The company said investors are attracted to catastrophe bonds because of their standardized structure, clear downside risk exposure and ex post transparency, which support efficient scaling and clearer risk assessments.
Gallagher Securities also saw growing demand for sidecar and structured balance sheet solutions, with 53% of investors indicating plans to allocate capital to these structures. The report notes that these arrangements attract investors seeking closer alignment with underwriting results and access to more specialized or less commoditized risk areas.
Direct investment interest in insurance company equity or debt is significantly lower. Gallagher Securities found that only 21% of respondents targeted these strategies, reflecting the higher operational involvement and governance considerations associated with ownership-based investing.
“We’re in a market where capital wants high-quality underwriting and insurance companies want stable, scalable underwriting capabilities,” said Jason Bolding, CEO of Gallagher Securities. “The value comes from building the bridge between the two.”
Gallagher Securities said investors continue to be attracted to insurance-related assets because of their low correlation to broader financial markets, diversification advantages and the ability to leverage underwriting returns as a standalone source of performance. The company added that many institutional investors now view insurance-related assets as a long-term strategic allocation within alternative investment portfolios.
The report shows that real estate catastrophe risk remains the main area of ​​interest for investors, with 72.9% of respondents viewing it as their preferred business area. Cyber ​​risk ranked second at 27.1%, followed by casualty business at 22.9%, reflecting continued interest in diversifying insurance-related risk exposures.
Gallagher Securities said the insurance-related investment market is becoming increasingly complex, with investors placing greater emphasis on transparency, governance and return expectations for specific structures.
The firm noted that investors are now applying more detailed return benchmarks and allocation criteria across cat bond, sidecar and direct insurance investments.
Gallagher Securities and Gallagher Re said insurers will operate in a supportive financing environment by 2026, supported by growing pools of non-traditional capital in the reinsurance, insurance-related securities and private investment markets. Insurers are increasingly integrating alternative capital into long-term strategies alongside traditional reinsurance arrangements, the companies said.
The findings are based on a Gallagher Securities survey of more than 60 institutional investors with existing exposure to insurance-related assets, as well as a series of interviews conducted in late 2025 and early 2026.
