Booming insurance-linked securities market: Swiss Re

The insurance-related securities market posted a new record issuance of $12.3 billion in 49 deals in the first half of the year and is expected to continue its robust performance, according to a report from Swiss Re Ltd on Wednesday.

New issuance in the first half of this year was up 25.5 percent from $9.8 billion in the year-ago period and was also well above the five-year and 10-year averages, according to the report.

The second quarter was the largest quarter of primary issuance on record, and the breakneck pace is forecast to continue.

“2024 is on track to break another record for primary issuance, barring any disruptive catastrophe event, until primary issuance activity resumes after the wind season,” Swiss Re said.

New sponsors help boost activity.

Nine new sponsors accessed the capital markets in the first half of the year, following 13 new unique sponsors in all of 2023.

New sponsors this year included the Government of Puerto Rico with the $85 million Puerto Rico Parametric Re 2024-1, which covers the Puerto Rico hurricane and earthquake, and the $400 million Winston Re 2024-1, covering the storm in Florida.

Secondary trading of catastrophe bonds is also booming, with April posting a monthly record of 272 secondary trades, according to the report.