Catastrophe bond & insurance-linked securities (ILS) market reports from Artemis
Download regular quarterly reports on the catastrophe bond and insurance-linked securities (ILS) market from Artemis. Reports include a look at some of the key issuance statistics and how market trends change. We hope you enjoy the easy to download and print report format and encourage you to share them with your colleagues. Each report uses data from the Artemis Deal Directory.
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Q1 2024 – Record setting trend continues with strongest ever first-quarter
This report reviews the catastrophe bond and insurance-linked securities (ILS) market at the end of the first-quarter of 2024, looking at new risk capital issued and the composition of transactions completed during the period, as well as reviewing full year cat bond activity.
The opening quarter of 2024 picked up where the previous year left off, driven by strong interest in cat bonds as a source of reinsurance from repeat and four new sponsors, which combined sponsored 24 transactions comprised of 34 tranches of notes, taking issuance to $4.23 billion for the period.
View all of our Artemis Live video interviews and subscribe to our podcast.
All of our Artemis Live insurance-linked securities (ILS), catastrophe bonds and reinsurance video content and video interviews can be accessed online.
Our Artemis Live podcast can be subscribed to using the typical podcast services providers, including Apple, Google, Spotify and more.
Data used in this report is taken from the Artemis Deal Directory so includes any privately marketed and issued catastrophe bond transactions as well as any life, health or mortality insurance-linked securities we have data on.
Download your copy of the Q1 2024 Artemis ILS Market ReportArchived Catastrophe Bond & ILS Market Reports
Q4 2023 – An unprecedented year of new risks, records, and huge market growth
The final quarter of 2023 saw a record period of cat bond market issuance activity, with $5.6 billion of new transactions recorded by Artemis and the first 144A cyber cat bonds seen, taking full-year deal volumes to a record-high of $16.4 billion and lifting the outstanding market to $45 billion for the first time in its history.
Q3 2023 – A quiet Q3 but market still on track for record year
This quarter saw a typical hurricane season slow-down in issuance, with just $549 million of new risk capital brought to market, approximately 73% of which came from issuance of 144a property cat bonds, while three smaller private cat bonds made up the rest.
Q2 2023 – The biggest single quarter of issuance ever
This quarter’s record $7.1 billion of issuance came from 36 transactions comprised of 48 tranches of notes, the large majority of which were traditional 144a property cat bonds, with just a few cat bond lite deals placed.
Q1 2023 – Spreads and multiples soar in busy opening quarter
19 transactions comprised of 29 tranches of notes completed first-quarter 2023 catastrophe bond and related ILS issuance, bringing a combined $3.3 billion of new risk capital to market.
Q4 2022 – Rising prices drive spreads toward record levels
Year-on-year, issuance fell, but an average number of deals still brought $1.6 billion of new risk capital to market in the final quarter of 2022, while investors pushed for higher pricing amid the hardening reinsurance market landscape.
Q3 2022 – 9M issuance strong despite unusually quiet Q3
Q3 is typically the slowest quarter of the year for new catastrophe bond issuance, but at just $266.5 million from seven transactions, six of which are private, or cat bond lite deals, Q3 2022 issuance is especially low, and comes in $666 million under the 10-year average for the quarter.
Q2 2022 – Spreads widen in third busiest cat bond Q2
23 catastrophe bond transactions, comprised of 34 tranches of notes, provided reinsurance or retrocession protection against a variety of perils for sponsors during the second-quarter of 2022. When combined with the three private ILS deals, Q2 2022 issuance reached approximately $5.1 billion.
Q1 2022 – Outstanding market hits new high after strong first quarter
Combined, property catastrophe bond, private cat bond, and other ILS issuance exceeded $3.5 billion in the first quarter of 2022, making it the third most active Q1 in the market’s history, in terms of risk capital issued, and taking the outstanding market size to a new high of $37.5 billion.
Q4 2021 – Market expands as annual issuance breaks record by 15%
For the full-year, we saw a record level of property catastrophe bond issuance, with over $12.5 billion of risk capital issued. Including cat bonds covering non-catastrophe risks, as well as private cat bonds we’ve tracked, Q4 issuance reached $3.2 billion and full-year 2021 hit a new record of $14 billion, surpassing the previous record set in 2020 by almost $2 billion, or 15%.
Q3 2021 – Record pace of issuance continues
The record pace of issuance in 2021 continued during the third-quarter, as 25 tranches of notes combined brought more than $2.7 billion of new risk capital to market, beating the prior year period by over $1 billion. 2021 is the first time ever that Q3 issuance has exceeded $2.5 billion.
Q2 2021 – On track to break multiple records
For the first time in the market’s history, catastrophe bond and related ILS issuance surpassed $8 billion in a single quarter during Q2 2021, setting a new quarterly record at $8.5 billion. Of the record breaking Q2 issuance total, a significant $6 billion or over 70% covered catastrophe risks, making this the second biggest quarter on record for property cat bond issuance.
Q1 2021 – Upsizing and price declines underpin busy start to the year
Catastrophe bond and related ILS issuance amounted to $4.63bn as at the end of Q1 2021, making it the third time in the past four years that Q1 issuance has surpassed the $4bn mark. Although down on the record-breaking $5bn issued in the opening quarter of last year, issuance still came in almost $2bn above the ten-year average for the period.
Q4 2020 Report – Busy fourth-quarter completes record catastrophe bond year
Catastrophe bond and ILS issuance reached a staggering $6 billion in Q4 2020. This is almost $3.5 billion above the ten-year average for the quarter, and the only time in the market’s history that fourth-quarter issuance has reached this level. Full-year 2020 issuance also beat all records and the year saw the most transactions come to market ever.
Q3 2020 Report – Positive momentum continues in above-average third-quarter
11 transactions came to market in the third-quarter of 2020, resulting in catastrophe bond and ILS issuance of $1.63 billion. Year-on-year, issuance grew by roughly $214 million and, despite financial market uncertainty and volatility as a result of the Covid-19 pandemic, Q3 2020 issuance is the third highest of the past decade.
Q2 2020 Report – Issuance levels solid as market once again performs in a time of crisis
Impressively, given the uncertain environment created by the Covid-19 pandemic, second-quarter catastrophe bond and ILS issuance surpassed $3.5 billion for the fifth time in the last decade, with $3.76 billion of new risk capital issued from 18 transactions consisting of 26 tranches of notes in Q2 2020.
Q1 2020 Report – Record levels of catastrophe issuance drives new market high in Q1
For the first time in any first-quarter and a rarity in any quarter, catastrophe bond and ILS new issuance exceeded $5 billion in Q1 2020. Also impressive, is the fact almost $3.9 billion of the new risk capital brought to market focused on catastrophe risk issuance.
Q4 2019 Report – Catastrophe risk rebounds in a record fourth-quarter
In the fourth-quarter of 2019, catastrophe bond and ILS issuance reached a huge $3.3 billion, which is $1.1 billion above the ten-year average for the quarter, with catastrophe risk focused cat bonds contributing the majority of the quarter’s deal flow.
Q3 2019 Report – Mortgage deals boost subdued market
Catastrophe bond and ILS issuance in the third-quarter of 2019 totalled $1.42 billion, and was comprised of 11 deals and 20 tranches of notes. Despite declining year-on-year, the volume of new risk capital brought to market in Q3 is the third highest of the last ten years for the quarter thanks to the ongoing interest in mortgage ILS deals.
Q2 2019 Report – Repeat sponsors and risks underpin issuance
A total 18 deals consisting of 32 tranches of notes were brought to market in the second-quarter of 2019, resulting in approximately $3.61 billion of new risk capital, as shown by the Artemis Deal Directory. Both first and second-quarter 2019 catastrophe bond and ILS issuance declined year-on-year, but at approximately $6.4 billion, first-half 2019 issuance is still the third highest ever recorded.
Q1 2019 Report – New sponsors and perils feature in above average Q1
At $2.8 billion, catastrophe bond and ILS issuance was the second most active Q1 in the market’s history, in terms of deal volume. This came from 20 transactions consisting of 28 tranches of notes helping the outstanding market size increase to a huge $37.9 billion.
Q4 2018 Report – Mortgage insurance risk dominates, as cat risk issuance shrinks
Issuance during the fourth-quarter of 2018 reached $1.94 billion, which is slightly below the long-term average for the period. The period was dominated by mortgage ILS issuance, which accounted for 68% of the total. At the end of 2018, the outstanding catastrophe bond and ILS market volume reached a new high, helped by a record $13.8 billion of full-year issuance.
Q3 2018 Report – New perils help cat bond market to record Q3
In total, nine transactions consisting of 15 tranches of notes came to market in Q3, taking issuance to a huge $2.5 billion. This is the first time in the market’s history that third-quarter issuance has surpassed $2 billion, according to data from the Artemis Deal Directory.
Q2 2018 Report – Sponsors and investors show commitment to ILS
Catastrophe bond and ILS issuance in the second-quarter of 2018 was the second highest ever recorded, at $5.151 billion from 26 deals, made up of 46 tranches of notes. As shown by the Artemis Deal Directory, the strong level of issuance in Q2 combined with the record-breaking Q1, takes H1 2018 issuance to $9.39 billion, making this already the second most active full-year ever recorded
Q1 2018 Report – Market buoyant despite 2017 catastrophes
For the fifth consecutive year, catastrophe bond and ILS issuance broke records in the first-quarter, with approximately $4.24 billion of new risk capital brought to market from 23 tranches of notes via 17 deals. Data from the Artemis Deal Directory shows that this is the first time Q1 issuance has surpassed $4 billion, demonstrating the ability of this market to bounce back after the catastrophe losses in 2017.
Q4 2017 Report – Record 2017 issuance takes market to record size
During the fourth-quarter of 2017 catastrophe bond and ILS issuance reached $1.92 billion, which is $146 million above the ten-year average for the quarter. Combined with more than $10.6 billion of issuance in the first nine months of the year, full-year 2017 issuance broke records, with roughly $12.6 billion of new risk capital brought to market.
Q3 2017 Report – Parametrics dominate an average but diverse quarter
During the third-quarter of 2017 catastrophe bond and ILS issuance failed to exceed $1 billion for just the second time in the last five years, but the Artemis Deal Directory shows that issuance was still above the ten-year average for the period, by almost $108 million. In total, six transactions consisting of nine tranches of notes came to market in Q3 2017, amounting to $873.71 million of risk capital issued.
Q2 2017 Report – First double-digit year ahead, $10 billion imminent
Catastrophe bond and ILS issuance in Q2 of 2017 broke records, with over $7 billion of new risk capital brought to market ($7.001 billion to be exact) from 29 deals, made up of 55 tranches of notes. The Artemis Deal Directory shows that Q2 issuance is only $52 million less than full-year 2016 issuance and, combined with Q1 takes H1 2017 issuance to $9.761 billion, the most ever witnessed in a single year.
Q1 2017 Report – More records drive further growth
Q1 saw $2.76 billion of risk capital issued from fourteen transactions, becoming the fourth consecutive year Q1 issuance has reached a new high, and approximately $1.4 billion above the ten-year average. The outstanding market size at the end of Q1 2017 is the largest ever, at an impressive $27.19 billion, roughly $377 million higher than at the end of 2016.
Q4 2016 Report – Market reaches new heights
Q4 of 2016 saw $2.13 billion of risk capital issued from six transactions, exceeding the ten-year average for the quarter by approximately $337 million. Strong investor and sponsor appetite throughout 2016 helped the market end the year at a new record size, of $26.82 billion.
Q3 2016 Report – Weather risk returns, private deals, market growth
Q3 saw $1.087 billion of risk capital issued from eight transactions, making it the third most active Q3 of the last decade in terms of volume, and one of the busiest in the market’s history in terms of number of deals. Strong investor appetite saw the outstanding market size increase from the $25.174 billion recorded at the end of Q2, to $25.449 billion.
Q2 2016 Report – A quiet quarter fails to keep up with investor demand
Q2 2016 issuance failed to hit $2 billion, with just $1.624 billion of new risk capital issued from 14 transactions, so not meeting investor demand. This is the first time since 2011 that issuance has failed to reach $2 billion, resulting in a decline in the outstanding market size from the record-breaking $26.516 billion seen at the end of Q1, to $25.174 billion.
Q1 2016 Report – Another record first-quarter
For the first time in its history the catastrophe bond and ILS market has ended a quarter with more than $26 billion of outstanding market capacity, driven by a record-breaking start to the year that saw $2.215 billion of new risk capital issued from ten transactions, lifting the outstanding market to $26.516 billion at the end of March 2016.
Q4 2015 Report – Outright market growth continues
Q4 is typically an active period for catastrophe bond issuance and, despite being one of the quietest fourth-quarters of the last decade, catastrophe bond and ILS issuance remained strong in Q4 2015, totalling $1.525 billion.
Q3 2015 Report – A market making steady progress
This is typically a quieter period for catastrophe bond and ILS issuance. Q3 2015 issuance was, as expected, lower than the previous two reports, but issuance during the quarter totalled $1.093 billion, the second highest Q3 volume ever recorded by Artemis.
Q2 2015 Report – Keeping up with demand
The second-quarter saw brisk issuance activity with volume reaching $3.162 billion from 17 new cat bond & ILS transactions. While not beating any records, the issuance environment showed that the market is keeping up with investor demand, although perhaps not satiating it yet.
Q1 2015 Report – The biggest first-quarter ever
The first-quarter saw a record level of risk capital issued. Volume reached $2.062 billion from 15 new cat bond & ILS transactions. The brisk issuance has helped 2015 carry on from where last year’s record deal flow left off.
Q4 2014 – A busy finish to a record year for ILS
The total volume of new catastrophe bonds and insurance-linked securities (ILS) issued during Q3 2014 was a healthy $2.16 billion. The fourth-quarters brisk issuance helped 2014 achieve a new record total issuance of $8.8 billion.
Q3 2014 – A lazy summer for ILS
The total volume of new catastrophe bonds and insurance-linked securities (ILS) issued during Q3 2014 was only $364 million. The third-quarter is often characterised by slower issuance but this year the mix of deals was interesting.
Q2 2014 – The Biggest Catastrophe Bond, The Biggest Quarter
The total volume of new catastrophe bonds and insurance-linked securities (ILS) issued during Q2 2014 reached $4.634 billion, according to the Artemis Deal Directory. This is a record second-quarter, in fact the highest level of new cat bond and ILS issuance recorded in any single quarter in the ILS markets history.
Q1 2014 – A Record Quarter
The total volume of new catastrophe bonds and insurance-linked securities (ILS) issued during Q1 2014 reached $1.585 billion, according to the Artemis Deal Directory. This is a record first-quarter, the highest level of new cat bond and ILS issuance recorded in the first three months of the year in the markets history.
