ILS Annual Report September 2023
The period from July 2022 to June 2023 was illustrative of the ILS market’s resilience in the face of both significant catastrophic activity and persistent macroeconomic headwinds. 2023 began with the largest first half issuance volume on record and is further trending towards a record-breaking calendar year. Increased catastrophe bond yields have created an ideal environment for investors to raise capital. Overall, ILS capital reached $100 billion in 2023. Further, client demand remains as strong as ever—the cat bond market continues to see a diverse group of returning and new sponsors, including nine first-time sponsors. Transactions continue to feature broad risk profiles with varying ranges of expected loss, regions of coverage, and perils.