insurance securitization

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.

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.

Catastrophe bond and related insurance-linked securities (ILS) market activity levels accelerated in the second-quarter of 2024, with a record $8.4 billion of new risk capital issued that propelled the market to a record size of $48 billion, Artemis’ just-released new quarterly market report details.

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.