Catastrophe Bond Market Set Numerous Records in Second Quarter

Some $11.3 billion in new risk capital was issued in the catastrophe bond market during this year's second quarter, making the period the biggest single quarter in the catastrophe bond market's history, according to data from Artemis.

Second-quarter catastrophe bond issuance came in the form of 48 transactions that included 80 tranches of notes, according to the Q2 2026 Catastrophe Bond & ILS Market Report from Artemis.

The record issuance in the second quarter topped the previous record set in 2025 by more than $842 million, Artemis said. In addition, May was the largest month of catastrophe bond issuance in the time Artemis has tracked the sector with nearly $7 billion coming to market through 20 deals, the report said.

The second-quarter catastrophe bond activity came on the heels of a busy first quarter, Artemis reported, producing total issuance of nearly $18 billion during the first half of 2025, up from a previous first-half record of $17.6 billion. In addition, the busy first half makes 2026 already the second-largest year on record for catastrophe bond issuance, trailing only the $25.6 billion issued during the full year 2025, Artemis said.

The total catastrophe bond market size hit $65.6 billion as the second quarter closed, a new end-of-quarter record, according to Artemis. The total market size stood at $63.9 billion at the end of this year's first quarter, with the second quarter's new issuance expanding the market's size despite $9.6 billion in maturities during the quarter, the report said.

While most of the second quarter's catastrophe bond issues were brought to market by repeat sponsors, nine new sponsors did enter the market, yet another quarterly record, the Artemis report said.

According to the Artemis report, perils addressed by second-quarter catastrophe bonds included German flood, international multiperil, US named storms, California wildfire and fire following earthquake, European windstorm, Massachusetts multiperil, US multiperil, California earthquake, Florida multiperil, Japanese peril, and Florida named storm.

Additional perils included Jamaica named storm, Texas multiperil, Louisiana named storm, Kyrgyz Republic multiperil, Tajikistan multiperil, and unknown property-catastrophe risks.