At this time, Artemis’ knowledge and charts on the catastrophe bond and related insurance-linked securities (ILS) market have been up to date to accommodate the newest new Marlon deal and we’ve now cleared the $4 billion milestone for Might 2024, whereas year-to-date issuance is monitoring 38% forward of the earlier report for the primary 5 months.
At $4.014 billion of catastrophe bonds issued and tracked by Artemis in Might, it has grow to be the largest single month of issuance we’ve ever recorded and the primary time any single month has surpassed $4 billion.
That’s notable by itself, however once you take a look at issuance for the primary 5 months of 2024, it actually drives dwelling the report setting tempo of exercise we’ve been reporting on within the disaster bond market.
The chart under (available here in interactive form), reveals disaster bond issuance by month and 12 months and may be filtered to exclude, or embody months:
The earlier largest month of recent disaster bonds we’d ever recorded was December 2023, with virtually $3.6 billion of issuance, earlier than that was Might 2017 with $3.4 billion.
Might 2024 noticed 14 new disaster bonds listed and settled within the Artemis Deal Directory, simply certainly one of which was non-public, a $25 million Eclipse Re (Dec 2023 noticed a $100m Eclipse Re deal issued). That’s a report variety of offers for any Might we’ve tracked.
That means that, Might 2024 can be the report single month of 144A disaster bond issuance as nicely, at almost $3.99 billion.
Massive offers did skew the months complete issuance recorded in our Deal Listing considerably, with two cat bond problems with over $1 billion, from Florida Residents and State Farm.
There was a great deal of diversification on supply for buyers in Might 2024, with a mixture of cat bond triggers, two parametric offers, three index-trigger offers, and the remaining indemnity that we have now set off particulars on, whereas on perils we noticed US nationwide multi-peril offers, Florida centered cat bonds, different regional US offers, one cyber cat bond, one Caribbean, and one that includes Mexican Pacific coast wind threat.
Maybe extra spectacular than Might’s complete alone, is the brand new report stage of cat bond issuance for the primary 5 months of this 12 months.
Artemis has now recorded simply over $11.7 billion of newly settled cat bonds and personal cat bonds in 2024 thus far.
The earlier report for the primary 5 months was simply over $8.5 billion, set final 12 months, and earlier than that nearly $7.9 billion in 2017.
In consequence, 2024 disaster bond issuance recorded by Artemis is now operating 38% forward of the prior 12 months report by the tip of Might, which is a very spectacular improve and bodes nicely for the full-year complete additionally setting a brand new report.
With simply over $430 million of recent cat bonds nonetheless being marketed for a June settlement presently, the half-year complete is heading in the right direction for a really sturdy report displaying at above $12.1 billion thus far, a determine that would rise by the point we get by the subsequent month.
The earlier first-half report, for Artemis’ cat bond Deal Directory was roughly $10.34 billion, set final 12 months.
Which suggests, with over $11.7 billion issued and settled by the tip of Might, the disaster bond market has already damaged the first-half report by 14% and with June’s at the moment marketed offers included, it signifies a brand new first-half report by greater than 17% at this time limit.
All of which helps to drive excellent disaster bond market development and even after a glut of latest maturities, our measure of the outstanding market remains above $49 billion today ($49.1bn), which is greater than 9% up on the tip of 2023 determine.
The Artemis Deal Directory lists all disaster bond and associated transactions accomplished because the 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 observe catastrophe bond and related ILS issuance data, probably 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 offers a useful 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.
