Record Cat Bond Issuance Lifts Market Size Over $50 Billion

Record issuance of catastrophe bonds in the first six months of the year has lifted the size of that market over the $50 billion mark for the first time.

New offerings of the insurance-linked securities reached a record $17.1 billion, according to a study by Swiss Re released Wednesday. This makes 2025 the market’s second-most active year ever, with six months still to go.

Overall, the cat bond market reached $55.8 billion by the end of June, showing 76% growth since the end of 2020.

Homes destroyed by the Eaton Fire in California last January.

Photographer: Kyle Grillot/Bloomberg

Cat bonds allow insurers to shift part of their risk to capital markets, where ...