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, .The second-quarter of 2024 saw a record across full 144A property catastrophe bond transactions, cat bonds covering non-catastrophe risks, such as cyber risks in this case, and privately placed cat bond deals.34 new cat bond transactions were issued during the second-quarter, comprised of 52 tranches of notes, as positive momentum was not only sustained but accelerated in the period, , which is another record for the sector.

The quarter also set another record quarter for the traditional 144a property catastrophe bond space, which accounts for 98% of Q2 2024 issuance at $8.2 billion, and 96% of H1 2024 issuance at $12.1 billion, according to data from the Artemis Deal Directory.Numerous repeat and a healthy number of new sponsors contributed to issuance in the second quarter.The period also featured the second largest cat bond ever, a $1.4 billion Texas multi-peril deal, and two other transactions sized at $1 billion or more.

Some new risks also featured this quarter, including a small yet novel parametric cloud outage cyber cat bond.As readers of Artemis will be aware, spreads in the cat bond space have fluctuated since the highs of 2023 but remain elevated and are clearly still very attractive to investors.But , achieving strong execution on many deals while the majority of issuances also grew in size while marketing, which our new report goes into some detail on.

Given just how strong the opening two quarters of 2024 have been, it’s no surprise that the outstanding cat bond market has also reached .Over the rest of the year, Artemis’ data shows approximately $3.35 billion of cat bond notes scheduled to mature by year-end, meaning if issuance is just around the 10-year average we should see the market sustain its new record size..

But, of course, with issuance continuing to break records, the expectation is the rest of this year could beat long-term averages, meaning further outright growth of the catastrophe bond market is certainly possible.Hurricane season adds some uncertainty over market activity levels for the coming months and end of year, naturally, but the catastrophe bond market remains poised for its first $20 billion year of issuance and a $50 billion record outstanding market size is also in reach, if the cat bond market can maintain the pace seen over the last couple of years.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 second-quarter 2024 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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