A quiet Q3, but 9M 2024 catastrophe bond issuance hits $13.2 billion: Report

Third quarter catastrophe bond and related insurance-linked securities (ILS) issuance was muted at $573 million, but sufficient to take issuance for the first nine months of the year to a new high of $13.2 billion, according to Artemis.

Now available to download for free, the Artemis Q3 2024 cat bond and related ILS market report dissects the size, perils, triggers, and pricing metrics for quarterly and 9M issuance.

At $537 million, issuance in Q3 2024 was below-average as the large majority of the 15 transactions brought to market were privately placed deals, which are typically a lot smaller than full 144a transactions.

Just two 144a transactions were issued in the quarter, a property catastrophe bond from Groupama, the $163.3 million Quercus Re DAC 2024-1, covering European windstorm risks (France only), and the other was the largest 144a cyber cat bond ever, the $210 million PoleStar Re Ltd. (Series 2024-3) from Beazley.

Alongside these two transactions, 13 private, or cat bond lites featured with a combined size of almost $200 million. Additionally, two mortgage ILS deals were sponsored in Q3, totalling a combined $527 million.

As some of our readers will be aware, it was a record first half of the year for the cat bond market, and issuance in Q3 ensured that the $13 billion mark has already been exceeded, with 9M 2024 issuance hitting a new high of $13.2 billion, so 2024 remains the third biggest year ever for issuance and has closed the gap on 2021’s $13.9 billion.

However, from the end of Q2 to the end of Q3, the outstanding market size shrunk by roughly $255 million as maturities in the period outpaced the volume of new risk capital. Although, at $47.7 billion, it remains around $2.8 billion larger than at the end of 2023.

For 2024 to be a record year for cat bond issuance, so surpassing last year’s $16.4 billion, it’s going to require an above-average final quarter of the year. But what happens between now and the end of the year, 2024 will go down as another very strong year for the cat bond and related ILS space.

For full details of third-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.

Download your free copy of Artemis’ Q3 2024 Cat Bond & ILS Market Report here.

For copies of all of Artemis’ catastrophe bond market reports, visit the archive page and download them all.

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