The insurance-linked securities market saw record first-half new issuance of $12.3 billion across 49 transactions and is expected to continue its robust performance, according to a report Wednesday from Swiss Re Ltd.
This year’s first-half new issuance was up 25.5% from $9.8 billion in the year-earlier period and was also well above both the five- and 10-year averages, according to the report.
The second quarter was the highest primary issuance quarter on record, and the blistering pace is forecast to continue.
“2024 is on track to break another record in terms of primary issuances barring any disruptive catastrophe event until the primary issuance activity resumes after the wind season,” Swiss Re said.
New sponsors are helping drive activity.
Nine new sponsors accessed the capital markets during the first half following 13 unique new sponsors in all of 2023.
This year’s new sponsors included Government of Puerto Rico with its $85 million Puerto Rico Parametric Re 2024-1 covering Puerto Rico windstorm and earthquake and Tower Hill Insurance Group LLC’s massive $400 million Winston Re 2024-1 covering Florida windstorm.
Secondary trading of catastrophe bonds is also thriving, with April seeing a monthly record 272 secondary trades, according to the report.
