The catastrophe bond market shattered a host of records in 2025 — and many expect another banner year as investors flock to what has been an often-overlooked asset class.
The issuance of so-called CAT bonds ballooned to $25.6 billion in 2025, according to specialist data provider Artemis.bm, eclipsing the 2024 record of just under $17.7 billion by a whopping 45%.
The issuance stemmed from 122 transactions, surpassing the previous record of 95 set in 2023, with 15 first-time sponsors seen entering the market. Taken together, these records reflect a breakout year for what has long been considered a relatively niche corner of the insurance industry.
Andy Palmer, head of insurance-linked securities (ILS) structuring for EMEA and APAC at Swiss Re
, one of the world’s largest reinsurers, said no one could have predicted the amount of CAT bond issuance in 2025, describing the feat as “absolutely remarkable.”
