Disaster bond and associated insurance-linked securities (ILS) market issuance reached an enormous $7.1 billion for the first-quarter of 2025, which has pushed the scale of the excellent market to a brand new all-time-high of $52.2 billion, Artemis’ new quarterly cat bond market report shows.
The Artemis Q1 2025 Catastrophe Bond and related insurance-linked securities (ILS) Market Report, available to download now, examines the cat bond and related ILS risk capital issued in the quarter.
On the again of a report 12 months for the disaster bond and associated insurance-linked securities (ILS) market, 2025 has additionally started at a record pace with first-quarter issuance reaching a huge $7.1 billion.
In this brand new report, we dissect the report stage of Q1 2025 issuance, which elevated by greater than $2.8 billion 12 months on 12 months.
Q1 2025 is now the second largest single quarter of cat bond issuance ever, behind solely Q2 2024’s $8.4 billion.
It’s additionally solely the third time available in the market’s historical past that issuance has exceeded $7 billion in a single quarter and builds on the $17.7 billion of latest danger capital delivered to market in 2024.
Our new report breaks down the categories, sizes, perils, triggers, and pricing metrics for Q1 2025 cat bond and associated ILS issuance, in addition to detailing upcoming maturities and the excellent market.
Conventional 144A property cat bond issuance dominated the quarter, reaching $6.3 billion, which is surpassed solely by Q2 2024 and Q2 2023 for complete issuance in a single quarter for this kind of deal.
If you embrace different, non-cat danger, 144A transactions, Q1 2025 is the second largest quarter ever for Rule 144A issuance, at $7 billion.
This quarter’s issuance got here from a Q1 report 34 transactions comprised of 56 tranches of notes and featured repeat and new sponsors, some privately positioned transactions, in addition to a various mixture of disaster and non-catastrophe perils in varied areas.
The report also discusses pricing dynamics of the transactions positioned within the quarter, revealing a continuation of the unfold tightening witnessed within the ultimate three months of final 12 months. In opposition to a comparatively flat common anticipated loss 12 months on 12 months, whereas the unfold has fallen additional, though nonetheless stays wholesome.
Clearly, although, pricing dynamics are nonetheless engaging to traders as most of the tranches of notes on supply within the quarter elevated in dimension whereas advertising and marketing.
On the identical time, sponsors benefited from sturdy execution on many offers, a continuation of the This fall 2024 development.
The primary three months of 2025 additionally noticed $4.4 billion of deal maturities, so it wouldn’t have been stunning if the market had shrunk from the tip of 2024 given common Q1 issuance over the previous decade was $3.6 billion.
As an alternative, a report $7.1 billion of latest issuance absorbed danger capital available in the market, helping to grow the outstanding cat bond market to a new end of quarter record high of $52.2 billion.
That represents beautiful 17% cat bond market progress, based mostly on our measure of danger capital excellent, in simply the final twelve months because the finish of Q1 2024.
Impressively, the excellent market dimension is now some 5.4% bigger than it was on the finish of final 12 months, which is a major single quarter of progress for the cat bond and associated ILS sector.
As well as, our new quarterly catastrophe bond market report additionally options distinctive insights from our sort companions, with world regulation agency Appleby commenting on ILS exercise within the interval from its viewpoint.
Download your copy of the new Q1 2025 Artemis cat bond market report here.
We are going to hold you up to date on all disaster bond and associated ILS transaction issuance as 2025 progresses, and we’ll report on the evolving developments within the cat bond, insurance-linked securities (ILS) and collateralised reinsurance market.
For full details of first-quarter 2025 cat bond and related ILS issuance, together with a breakdown of deal movement by elements equivalent to perils, triggers, anticipated loss, and pricing, in addition to evaluation of the issuance developments seen by month and 12 months.
Download your free copy of Artemis’ Q1 2025 Cat Bond & ILS Market Report here.
For copies of all our disaster bond market experiences, visit our archive page and download them all.
