ILS Q1 2023 Quarterly Update
After a difficult Q4 2022, the catastrophe bond market has reassumed its growth trajectory during the first quarter of 2023. Transaction sizes have increased markedly from the second half of 2022, with total deal sizes YTD 67% greater on average than those issued during H2 2022. Further, whilst pricing remains elevated from levels achieved in 2021, it has tightened during the first three months of 2023 from peak levels seen at year-end 2022, a development welcomed by insurers and reinsurers, alike, particularly at a time when pricing in the reinsurance and retrocession markets remain heightened relative to the prior decade.