Disaster bond and associated insurance-linked securities (ILS) market issuance of $4.5 billion within the fourth-quarter was enough to take the full-year 2024 whole to a document $17.7 billion, whereas the excellent market reached a brand new all-time-high of $49.5 billion, Artemis’ new quarterly cat bond market report shows.
The Artemis Q4 2024 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 and also reviews the record full year.
Fourth-quarter disaster bond market issuance reached $4.5 billion, which was under the quantity seen within the prior yr, however this second-largest fourth quarter in history took annual issuance in 2024 to a record $17.7 billion from 93 transactions.
Regardless of a sluggish third-quarter, H2 2024 disaster bond and associated ILS issuance surpassed $5 billion for simply the second time ever and mixed with a document H1 of greater than $12.6 billion, 2024 issuance far outpaced maturities and resulted within the excellent cat bond market ending the yr at a brand new excessive of $49.5 billion, representing year-on-year progress of 10%.
This report breaks down the scale, perils, triggers, and pricing metrics for each This autumn and full yr 2024 cat bond and associated ILS issuance, in addition to detailing upcoming maturities and the excellent market.
With a brand new annual issuance document set in 2024 and the market now approaching a brand new milestone of $50 billion of cat bond danger capital excellent, the data detailed within the report don’t cease there.
When it comes to 144A property cat bond issuance, 2024 has set a brand new document of $16.6 billion, up 11% on the earlier excessive in 2023.
Whole 144A cat bond issuance, which incorporates 144A cat bonds overlaying different strains of re/insurance coverage enterprise resembling cyber and terrorism, additionally hit a brand new excessive of $17.2 billion.
Personal, or cat bond lite issuance, did contribute in This autumn and full yr 2024 however fell year-on-year for each intervals.
As we discuss in this new report, in This autumn 2024, 4 first-time sponsors entered the disaster bond market, bringing the overall variety of new sponsors for the yr to 13, as insurers and reinsurers more and more turned to the capital markets to enhance their reinsurance and retrocession wants.
Robust demand from the cat bond investor base noticed the massive majority of tranches upsize whereas advertising in This autumn 2024, serving to sponsors obtain robust execution on offers as all however three tranches of notes noticed their closing unfold lower from the mid-point of preliminary steerage. This means a softer market, so buyers will likely be searching for worth stabilisation in 2025.
As our report also details, issuance exercise all through 2024 has taken the excellent cat bond market to a brand new excessive of $49.5 billion, reflecting outright market progress of 10% from the tip of 2023.
On common, the scale of the excellent market has risen by round 8% annually over the previous decade, with progress occurring in annually however 2019, when it contracted barely. On the finish of 2014, the excellent market dimension was $25.3 billion, so it has virtually doubled in 10 years.
This new report additionally appears at cyber disaster bond issuance year-to-date, personal cat bond issuance exercise, the unfold and multiples of cat bond issuance, and the upcoming maturity schedule.
As well as, our new quarterly catastrophe bond market report additionally options distinctive insights from our type companions, with world legislation agency Appleby explaining that the beginning of 2025 might be one other busy interval, because the cat bond market reveals no indicators of slowing down.
Download your copy of the new Q4 2024 Artemis cat bond market report here.
We’ll hold you up to date on all disaster bond and associated ILS transaction issuance as 2024 progresses, and we’ll report on the evolving tendencies within the cat bond, insurance-linked securities (ILS) and collateralised reinsurance market.
For full details of fourth-quarter 2024 cat bond and related ILS issuance, together with a breakdown of deal move by components resembling perils, triggers, anticipated loss, and pricing, in addition to evaluation of the issuance tendencies seen by month and yr.
Download your free copy of Artemis’ Q4 2024 Cat Bond & ILS Market Report here.
For copies of all our disaster bond market stories, visit our archive page and download them all.
