Based on Artemis’ Deal Directory information, which tracks issuances of disaster bonds and associated insurance-linked securities, the excellent market has hit a brand new file excessive of greater than $47 billion in threat capital excellent, having already risen by 5% for the reason that finish of final yr.
As of right this moment, issuance of latest 144A disaster bonds and the few personal cat bonds Artemis tracks has reached over $7.7 billion in 2024 so far.
The disaster bond market is working at a record-setting tempo once more in 2024 and with numerous massive cat bond offers anticipated and the pipeline nonetheless trying sturdy, we’re now anticipating a brand new half-year file for issuance could possibly be set.
With the settlement this week of numerous new disaster bonds, issuance tracked by Artemis has reached $7.7 billion and our measure of risk-capital excellent for the market is now at nearly $47.2 billion.
It’s the primary time the outstanding catastrophe bond and related insurance-linked securities (ILS) market has been above $47 billion in size, a brand new milestone for this market.
The excellent cat bond and associated ILS market was just below $45 billion in measurement on the finish of 2023, so has grown by nearly 5% since then, which given a major quantity of maturities earlier this yr is testomony to traders and cat bond fund managers reinvesting money earned and elevating new capital to help the bumper pipeline of offers.
Impressively, the excellent cat bond and associated ILS market is now over 24% bigger than it was on the finish of 2022, reflecting the sturdy issuance and progress in capital earned by way of returns from threat premium and collateral over that interval.
Most spectacular information level although, is the truth that the market had shrunk through the first-quarter of this year (as our report detailed), so simply for the reason that finish of March it has now expanded by nearly 6%.
Wanting forward, if all new cat bonds we’ve got listed in our Deal Directory settled as they’re listed right this moment the first-half would already be the fourth largest on file.
However with numerous different cat bonds, some significantly massive anticipated, we really feel it’s protected to name for a brand new file for first-half issuance in 2024, except one thing have been to derail the market’s trajectory.
There are just below $1.7 billion of cat bond maturities to return earlier than the top of the first-half of this yr, however already roughly $1.7 billion left in our Deal Listing to finish.
So, with extra offers to return and an opportunity of a few of these already listed upsizing, it appears extremely possible the excellent market will develop even additional by the top of the first-half of 2024.
Find all of Artemis’ catastrophe bond market charts and data here, or through the Artemis Dashboard.
All of our charts are up to date as new disaster bond points full, and as older issuances mature, primarily based on the info in Artemis’ extensive catastrophe bond Deal Directory.
