The expansion of catastrophe bond and insurance-linked securities (ILS) market activity in 2025 is driving higher earnings for bankers and brokers, with Aon reporting today that the third-quarter of 2025 saw its ILS business experiencing “significant growth” in revenue terms.Investment banks and broker-dealers have been raking in record-high levels of fees and revenue in 2025 across capital markets activity of all kinds.The reinsurance capital markets segment is also experiencing a growth spurt, resulting in higher earnings for specialist investment banking and broker-dealer units over the course of this year.After the second-quarter of 2025, insurance and reinsurance broker Aon had reported that .

Now, following the third-quarter of this year, Aon has again cited further expansion of the ILS activities undertaken by its Aon Securities unit, the investment banking, catastrophe bond and ILS arranging and dealing specialist within the group.It’s no surprise given that we’ve been reporting on, as well as the significant growth in other third-party capital backed reinsurance structures such as sidecars.Within the Aon Reinsurance Solutions division, the broker experienced 8% organic revenue growth in Q3 2025, which it said was driven by growth in treaty reinsurance placements, as well as net new business and strong retention.

Aon stated, “Insurance-linked securities had significant growth, though its overall contribution to growth was modest.” For the nine-month period, Aon’s reinsurance organic revenues have risen 5% year-on-year, with the growth in ILS structuring and placing services contributing to this as well..As use of third-party capital and securitization structures grows across insurance and reinsurance, the broker’s that have specialist investment banking units stand to benefit, as these are often high-fee activities that require specialist expertise and licences to be completed.

“Our Aon United strategy, accelerated through our 3×3 Plan, is delivering strong results.We are attracting top talent in high-growth areas, scaling our data analytics across our core Risk Capital and Human Capital businesses, expanding in the middle market and unlocking new sources of capital,” Greg Case, president and CEO of Aon commented on the results announced today.“We are executing with discipline and increasing the value we deliver to our clients – winning in existing markets, creating demand in emerging areas and innovating unique capital solutions.” “Our strong capital position, fueled by robust cash generation and disciplined portfolio management, enables us to execute our capital allocation model – balancing high-return investment for future growth and capital return to shareholders,” Case added.

“We remain confident in achieving our full-year 2025 financial targets and are well positioned to deliver sustainable growth in 2026 and beyond.” ..All of our Artemis Live insurance-linked securities (ILS), catastrophe bonds and reinsurance can be accessed online.Our can be subscribed to using the typical podcast services providers, including Apple, Google, Spotify and more.