Global Catastrophe Bond Issuance Surges to Record While Insured Losses Drop 56%

Swiss Re reported that catastrophe bond issuance in the first half of 2026 reached $17.6 billion across 64 transactions, the most active half‑year on record. Outstanding cat‑bond assets grew to $64.8 billion, helped by new sovereign sponsors Tajikistan and the Kyrgyz Republic, each securing $80 million of coverage, and by large private sponsors such as State Farm, Allstate, Travelers and ILS fund manager Integral, whose Windrose Re bond provided $275 million for U.S. wind‑storm risk.

Aon’s first‑half Global Catastrophe Recap showed global insured natural‑ disaster losses fell 56 % to $47 billion, down from $108 billion a year earlier. The United States accounted for about $36 billion (77 % of the total), with severe convective storms generating the bulk of losses. Thirteen events worldwide each exceeded $1 billion in insured losses, including a U.S. storm outbreak that alone caused over $5 billion in damage and a windstorm in Portugal and Spain. Preliminary estimates suggest the June 24 earthquakes in Venezuela could become a billion‑dollar loss, with economic impacts projected at $20‑30 billion.