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Executive Summary (Q1 2026)
Primary Cat Bond market
The Cat Bond market continued its strong expansion into early 2026. As of the end of March 2026, the outstanding Cat Bond market amounted to USD 57.5 billion, reflecting continued growth during the first quarter. The number of outstanding Cat Bonds increased to 355, highlighting sustained sponsor activity and robust investor demand across the market.
Primary market pricing moderated from the peak levels observed in 2023 and 2024. Together with easing collateral yields, the overall USD return potential declined from its peak, reflecting a broader normalisation of market conditions. Despite this adjustment, yield levels remain attractive relative to long‑term historical averages, continuing to support the appeal of Cat Bonds.
Overall Cat Bond market observations
Cat Bonds delivered positive performance in early 2026, with the Plenum Cat Bond UCITS Fund Index recording a return of 1.60% year‑to‑date as of the end of March, while three‑year annualised performance stood at 11.95% p.a., underlining the asset class’s strong long‑term performance.
Secondary market yields declined from their recent highs but remain above long‑term historical averages, indicating a pricing normalisation rather than a structural shift in demand. Cat Bond loss experience continues to be limited from a long‑term perspective, with the average annual realised market loss amounting to 0.84%. This compares favourably to the modelled expected loss for the overall market.
Global insured losses from natural catastrophes were estimated at around USD 20 billion in Q1 2026. The most significant events were severe convective storms and winter storm Fern in the United States. Overall, catastrophe activity and related insured losses during the first quarter remained limited.
Cat Bond market data is excluding life, mortgage and private Cat Bonds. Data as of March 2026. Source: Euler, Brokers
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