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Cat bond issuance hits record $12.5 billion

Catastrophe bond issuance reached a record of $12.5 billion in 2021, according to Aon. Up from the previous highest total of $11bn in 2020, the new issuance brings the value of active bonds in the market to $32bn. Aon’s investment banking arm Aon Securities participated in $7bn of last year’s issuance.

The catastrophe bond sector is celebrating its 25th anniversary, Aon noted, with the first cat bond, George Town Re, launched in December 1996. Over $117bn of cat bonds have been issued since.

The bonds had become “an integral part of the insurance ecosystem”, said Paul Schultz, CEO of Aon Securities.


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