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, .In total, the fourth-quarter of 2023 saw across full 144A property catastrophe bond transactions, cat bonds covering non-catastrophe risks, such as cyber, and privately placed deals.It was one of the busiest quarter’s ever for the market and the busiest fourth quarter on-record, which takes total issuance for the year to more than $16.4 billion, beating the previous record from 2021 by roughly $2.5 billion.

2023 is also , which was supported by a healthy volume of private deals and the arrival of the first 144A cyber cat bonds ever seen.In Q4 alone, five new sponsors entered the cat bond market, taking the number of first-time sponsors for the year to 14, which is the joint highest of any year alongside 2021.Across the transactions issued in the quarter that we have full pricing data for, the size increased by an average of 27% while marketing.

, which suggests that pricing is stabilising somewhat after three consecutive quarters with a negative average price change., sponsors took advantage of favourable market conditions in the final quarter of the year ahead of the January renewals, and investor appetite for the cat bond product was extremely strong in 2023, with the market growing 19% to $45 billion in size.We will keep you updated on all catastrophe bond and related ILS transaction issuance as 2024 progresses, and we’ll report on the evolving trends in the cat bond, insurance-linked securities (ILS) and collateralised reinsurance market.

For full details of fourth-quarter 2023 cat bond and related ILS issuance, including a breakdown of deal flow by factors such as perils, triggers, expected loss, and pricing, as well as analysis of the issuance trends seen by month and year.  For copies of all our catastrophe bond market reports, ..All of our Artemis Live insurance-linked securities (ILS), catastrophe bonds and reinsurance can be accessed online.

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