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Catastrophe bond issuance hits a record $24.9 billion in 12 months

Aon Securities said outstanding cat bond capital rose to $63.4 billion by end of June 2026, up 17% from the prior year.

Reported · Written up by our desk · Reinsurance

Aon Securities said catastrophe bond issuance totaled $24.9 billion for the 12 months ending June 30, 2026, the highest total on record and 15% above the prior record of $21.8 billion.

The report also showed the in-force cat bond market reaching a record $63.4 billion as of end-June, up 17% from end-June 2025, with Aon estimating an 11.6% compound annual growth rate over the past decade.

Aon reported that 78 records were set during the period, including 16 new sponsors using the cat bond market to support reinsurance needs, with insurers the largest issuers by group at 65%, followed by reinsurers at 17% and governments at 16%.

Using the Aon Securities Catastrophe Bond Total Return Index, the broker said cat bonds returned 12.5% over the reviewed period, citing coupon income as a key driver, and noted outstanding sidecar capital rose to $23 billion across property and casualty lines.

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