Cat bonds continue to perform strongly, casualty securitization expanding: AM Best

Speaking today at a briefing held in Monte Carlo at the Rendez-vous event, Angela Yeo, Senior Director, Analytics at global ratings agency AM Best has highlighted how investors’ appetite for catastrophe bonds has helped the space continue to grow.

With third-party capital deployed in reinsurance anticipated to grow by almost 7% this year, with AM Best and Guy Carpenter projecting it to end the year at a new high of $114 billion, Yeo explained how a lot of this growth boils down to the substantial growth that’s been seen within the catastrophe bond market in 2025.

“In the first half of 2025 we’ve already seen record issuances reaching nearly $17 billion, which has already surpassed full year 2024 issuances. And we think that it is quite realistic to expect the year ending in about $19 to $20 billion,” Yeo explained.

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