The disaster bond market is already on-track for report first-quarter issuance in 2025, with nearly $2.44 billion of recent cat bonds settled to date this yr and $1.93 billion of offers out there pipeline which can be scheduled to settle by finish of March, in line with Artemis’ intensive information on the sector.
Catastrophe bond market issuance activity is off to a record-breaking begin in 2025, constructing on what have been already distinctive information in cat bond deal volumes issued during the last two years.
Because it stands, including collectively the cat bond issuance accomplished to date within the first-quarter with the pipeline of recent issuance scheduled to finish earlier than its finish, the total cat bond issuance, across 144A catastrophe bonds and the private cat bonds we’ve tracked, is set to be almost $4.37 billion in Q1.
The earlier Q1 cat bond issuance report was set in 2024, after we tracked simply over $4.23 billion of recent issuance in our intensive Deal Directory.
Taking a look at solely full Rule 144A disaster bond issuance, the settled offers and pipeline to date for Q1 2025 is already heading for over $4.28 billion.
The earlier Q1 report for 144A cat bond issuance solely was simply over $4.07 billion set in 2024.
In reality, it seems like the primary two months of this yr alone will set a brand new January and February mixed cat bond issuance report, as soon as the pipeline offers for this month are all settled.
Given we’re solely approaching the center of February, there’s loads of time left for the pipeline to proceed constructing, for a few of these offers to upsize, and so lengthen the Q1 cat bond issuance report that appears destined to be set in 2025.
By way of the variety of cat bond offers we’ve listed within the Artemis Deal Directory to date in 2025, the determine at present stands at 24 entries, so not far behind the report of 25 which had been set in each 2020 and 2022.
Nevertheless, these two prior years each featured extra in the way in which of personal cat bond issuance.
By way of solely 144A cat bond entries in our Deal Listing, the full to date for Q1 2025 is 17, whereas the earlier report was 18 a yr in the past, in order that report additionally seems prone to fall.
By way of cat bond threat capital excellent, our measure of the market is barely decrease than on the finish of 2024 right now, at $49.4 billion.
There are significant maturity volumes to come, however the pipeline will outpace them for Q1 this yr, which means extra market progress is feasible by the tip of the quarter.
Market members have the urge for food to recycle and repurpose that money, whereas additionally placing cash into each renewal and incremental cat bond points that seem over the approaching weeks and months, which ought to proceed to buoy issuance and supply engaging issuance situations for sponsors.
2025 is ready to be one other very busy yr for the disaster bond market, its fund managers and traders.
As insurance coverage and reinsurance firm sponsors of cat bonds proceed to extend in quantity and search for bigger deal limits, at this stage there’s each probability we witness one other significantly robust full-year of issuance, with the potential for extra new information to be set.
As a reminder, you can track catastrophe bond issuance and the pipeline of deals due to settle in this chart.
You can track settled cat bond issuance by month and quarter in this chart (use the important thing of months on the backside to incorporate and exclude any to your evaluation).
The Artemis Deal Directory lists all disaster bond and associated transactions accomplished for the reason that market was fashioned within the late 1990’s. The listing additionally lists the cat bonds ready to settle, that are highlighted in inexperienced on the prime of the checklist.
Download our free quarterly catastrophe bond market reports.
We monitor catastrophe bond and related ILS issuance data, essentially the most prolific sponsors in the market, most lively structuring and bookrunning banks and brokers, which risk modellers feature in cat bonds most frequently, plus a lot more.
Find all of our charts and data here, or through the Artemis Dashboard which supplies a helpful one-page view of cat bond market metrics.
All of those charts and visualisations are up to date as quickly as a brand new cat bond issuance is accomplished, or as older issuances mature.
