The catastrophe bond issuance reached $6.38 billion in the second quarter of 2017, exceeding the previous $4.49 billion quarterly record set in 2014, according to a report by industry observer Aon Benfield.
Added to the first-quarter numbers of $2.17 billion, the first half of the year brings a total of $8.55 billion, higher than any other time period on record, according to the report.
The report cites strong investor demand for bonds that upsized initial guidance. Kilimanjaro II Re upsized by 100% to become the largest issuance in the quarter with $1.25 billion, and the third-largest catastrophe bond on record.
Six different public entities came to market during the quarter, with a total of $2.2 billion of catastrophe bond issuance.
During the quarter, all Aon Insurance-linked Securities Indices posted gains. The All Bond and U.S. Hurricane Bond indices posted returns of 1.06% and 1.14%, respectively. The BB-rated Bond and U.S. Earthquake Bond indices posted returns of 0.95% and 0.87%, respectively.