insurance securitization

While the pricing of cat bond notes stabilised somewhat in the final quarter of 2023, persistently firm reinsurance and retrocession rates saw investors achieve higher risk-adjusted pricing throughout the year, according to Artemis’ data.

The catastrophe bond and related insurance-linked securities (ILS) market has continued to set new records in the first-quarter of 2024, with an impressive $4.23 billion of new issuance recorded, Artemis’ new quarterly market report explains.

During the fourth quarter of 2023, the majority of tranches of cat bond notes closed above their initial target size, resulting in an average increase of 27% for the period, according to Artemis’ data.

A record breaking year for the catastrophe bond and related insurance-linked securities (ILS) market and continued momentum in early 2024 is having a positive influence on the wider ILS market, according to Brad Adderley, Bermuda Managing Partner, Appleby.

The catastrophe bond and related insurance-linked securities (ILS) market saw activity levels accelerate right the way through the busiest fourth-quarter in its history, resulting in a record year of issuance and market growth, Artemis’ new quarterly market report explains.

The catastrophe bond and related insurance-linked securities (ILS) market slowed down as is seasonally anticipated during the third-quarter of 2023, but while the $549 million of issuance was below the ten-year average for the period, the catastrophe bond market remains on track for a record year in 2023, Artemis’ latest quarterly report shows.

Property catastrophe bond issuance in 2023 has now exceeded the $10 billion mark, and so is well on track to beat the previous annual record of $12.5 billion seen in 2021, Artemis’ data shows.

After a very busy first-half for the catastrophe bond market saw issuance of property cat bonds reach a new high of $9.7 billion, the Artemis community is forecasting the market will remain busy through the rest of 2023.

The catastrophe bond and related insurance-linked securities (ILS) market saw $7.1 billion of new issuance in the second-quarter of 2023, becoming the biggest single quarter of issuance in the market’s history, Artemis’ latest quarterly report shows.

The catastrophe bond and related insurance-linked securities (ILS) market saw $3.3 billion of new risk capital issued in the first-quarter of 2023, but the big story of the opening period of this year was the elevated spread environment and as a result the promise of higher returns for investors, Artemis’ latest quarterly report shows.