{"id":315,"date":"2025-02-18T14:40:19","date_gmt":"2025-02-18T15:40:19","guid":{"rendered":"http:\/\/alteredconcept.com\/?p=315"},"modified":"2025-02-25T16:37:18","modified_gmt":"2025-02-25T16:37:18","slug":"cat-bond-market-poised-for-another-strong-year-in-2025-brad-adderley-appleby","status":"publish","type":"post","link":"http:\/\/alteredconcept.com\/index.php\/2025\/02\/18\/cat-bond-market-poised-for-another-strong-year-in-2025-brad-adderley-appleby\/","title":{"rendered":"Cat bond market poised for another strong year in 2025: Brad Adderley, Appleby"},"content":{"rendered":"
This content is copyright to www.artemis.bm<\/a> and should not appear anywhere else, or an infringement has occurred.<\/p>\n Following a record year for the catastrophe bond market in 2024, with issuance increasing by over $1 billion to a new annual high of $17.7 billion, 2025 is set to be another busy year for the market, according to Brad Adderley, Partner at global law firm Appleby. Annual cat bond issuance increased to a record $17.7 billion as the extremely active first half of the year and final quarter more than offset a quiet third quarter for the space.<\/p>\n This marked the second consecutive year in which annual cat bond issuance managed to set a new record, as well as being another year which saw activity levels swell in the final quarter ahead of the key January 1st reinsurance renewals.<\/p>\n Reflecting on this, Adderley discussed with Artemis what to expect in the cat bond market in the opening months of 2025.<\/p>\n \u201cClearly, issuance in 2024 has been very impressive and strong. But, is 2025 going to be busy? All I can tell you is that every day we are sending out a quote for a new cat bond. It\u2019s crazy, and it\u2019s showing no sign of slowing down,\u201d he explained.<\/p>\n We\u2019re now in February, and cat bond activity so far in 2025 has been very strong, and is already on track for record first-quarter issuance<\/a>, according to data from the Artemis Deal Directory<\/a>.<\/p>\n Back to Q4 and full year 2024, and much like any asset class, the cat bond market continues to demonstrate a strong balance of supply and demand, with deal sizes and final pricing of cat bond notes in the last quarter of 2024 reflecting sustained investor interest.<\/p>\n Additionally, nearly all cat bond tranches issued during the period were upsized during marketing, while the large majority of notes issued also priced below midpoint of initial guidance, by as much as 20% in some cases, which clearly points to strong demand from the investor base.<\/p>\n Addressing this, Adderley said: \u201cSo, what we\u2019re seeing is a flooding of the market, but as there\u2019s also better investors in the market to buy the product, the issuers can decrease price because everyone is saying please give it to me, please give it to me. And, by doing that, the sponsors keep on saying, I\u2019ll give you a lower quote.\u201d<\/p>\n He continued: \u201cReally, it\u2019s just in a constant cycle. We saw at the start of last year a couple of cat bonds failed to get over the line, and let\u2019s be honest, the prices are never too low. So, again, it\u2019s just a constant cycle between supply and demand. And, let\u2019s not forget that one or two of the largest ILS players in the market now are just cat bond funds, so they must be all over every single transaction.\u201d<\/p>\n Adderley also stressed that the anticipated \u201ccrazy\u201d start to 2025 will also be characterised by new life reinsurer formations and sidecars for life, casualty or general business.<\/p>\n He explained: \u201cI have enough new formations that will slip into the new year along new structures waiting to be started which will begin in January and submitted soon thereafter.\u201d<\/p>\n Interestingly, Adderley believes that the cat bond market is going to see a lot of new issuances and structures throughout 2025, as well as announcements of sidecars too.<\/p>\n \u201cSo, for me, I see as many interesting, complicated, transactional structures in the first two months of 2025. Whether or not March is busy or quiet, we\u2019ll have to wait and see,\u201d he concluded.<\/p>\n All of our catastrophe bond market charts and visualisations are up-to-date, so include this latest quarter of issuance data<\/a>.<\/strong><\/p>\n We will keep you updated on all catastrophe bond and related ILS transaction issuance as 2025 progresses, and we\u2019ll report on the evolving trends in the cat bond, ILS and collateralised reinsurance market.<\/p>\n Cat bond market poised for another strong year in 2025: Brad Adderley, Appleby<\/a> was published by: www.Artemis.bm<\/a> This content is copyright to www.artemis.bm and should not appear anywhere else, or an infringement…<\/p>\n","protected":false},"author":1,"featured_media":317,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[12],"tags":[],"_links":{"self":[{"href":"http:\/\/alteredconcept.com\/index.php\/wp-json\/wp\/v2\/posts\/315"}],"collection":[{"href":"http:\/\/alteredconcept.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/alteredconcept.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/alteredconcept.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/alteredconcept.com\/index.php\/wp-json\/wp\/v2\/comments?post=315"}],"version-history":[{"count":2,"href":"http:\/\/alteredconcept.com\/index.php\/wp-json\/wp\/v2\/posts\/315\/revisions"}],"predecessor-version":[{"id":318,"href":"http:\/\/alteredconcept.com\/index.php\/wp-json\/wp\/v2\/posts\/315\/revisions\/318"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/alteredconcept.com\/index.php\/wp-json\/wp\/v2\/media\/317"}],"wp:attachment":[{"href":"http:\/\/alteredconcept.com\/index.php\/wp-json\/wp\/v2\/media?parent=315"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/alteredconcept.com\/index.php\/wp-json\/wp\/v2\/categories?post=315"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/alteredconcept.com\/index.php\/wp-json\/wp\/v2\/tags?post=315"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\n<\/span>
\nArtemis spoke with Adderley ahead of the launch of our Q4 and full year 2024 catastrophe bond and related insurance-linked securities (ILS) market report.<\/a><\/p>\n
\nOur catastrophe bond deal directory<\/a>
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