cat bond lite

Consecutive record years of cat bond issuance, a fast start to this year, a broadening investor and sponsor base, and expansion into perils like cyber and casualty, means it’s an exciting time to be in the insurance-linked securities (ILS) space, according to Jason Bolding, CEO of Gallagher Securities.

Following a record year for the catastrophe bond market in 2024, with issuance increasing by over $1 billion to a new annual high of $17.7 billion, 2025 is set to be another busy year for the market, according to Brad Adderley, Partner at global law firm Appleby.

Kaith Re Ltd., the transformer vehicle owned by global reinsurance firm Hannover Re, has issued seven series of private catastrophe bond notes, all Seaside Re (Series 2025), for a total of $84 million of notes sold to investors.

2024 was another record issuance year for the catastrophe bond market and with total alternative reinsurance capital reaching new heights, the way insurance-linked securities (ILS) managers and investors matched appropriate risk returns was a notable success, according to Bill Dubinsky, Managing Director and CEO of Gallagher Securities.

Catastrophe bond and related insurance-linked securities (ILS) market issuance of $4.5 billion in the fourth-quarter was sufficient to take the full-year 2024 total to a record $17.7 billion, while the outstanding market reached a new all-time-high of $49.5 billion, Artemis’ new quarterly cat bond market report shows.

Speaking with Artemis, Brad Adderley, Partner at global law firm Appleby, emphasised that while 2024 may not be a record year for catastrophe bond issuance, it is not a sign of doom and gloom, as the market has already had a strong year despite a subdued third quarter.

We’ve learned of another private catastrophe bond transaction brought to market through the Artex Capital Solutions managed Eclipse Re Ltd. vehicle, with a $5 million Eclipse Re Ltd. (Series 2024-8A) now the eighth private or cat bond lite issuance from this structure in 2024 so far.

A fourth private catastrophe bond issuance of the year has come to light from Mangrove Risk Solutions Bermuda Ltd., the platform operated by Marsh McLennan and reinsurance broker Guy Carpenter, with a just over $14.35 million Mangrove Risk Solutions Bermuda Ltd. (Series 2024-C) placement completed.

Catastrophe bond and related insurance-linked securities (ILS) market activity was more muted in the third-quarter of 2024, but the $573 million of new risk capital issued still helped the market reach $13.2 billion after the first nine-months of the year, Artemis’ brand new quarterly cat bond market report details.

Analysis from broking group Aon and Parametrix, a specialist in parametric cloud downtime cyber risk transfer, shows that it is possible to gain diversification within cyber portfolios that have cloud outage risk concentrations, with geography one way to achieve that.