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Executive Summary (Q3 2025)
Primary Cat Bond market
The third quarter of 2025 marked another milestone for the Cat Bond market, with issuance volume reaching USD 5 billion. This brings year-to-date 2025 issuance to a new record, already surpassing any previous full-year total. As a result, the outstanding market size climbed to an all-time high of over USD 53 billion.
Strong investor demand continued to characterize the market, contributing to slightly lower average coupons. At the same time, a decline in average expected loss indicates that risk-adjusted returns remain attractive across the overall Cat Bond segment.
Secondary Cat Bond market
As of the end of Q3 2025, the average yield to maturity declined to approximately 6.44%, while market performance, as measured by the Plenum Cat Bond UCITS Index, reached a solid 7.26% year-to-date.
There were no significant new insured loss events during the third quarter. However, looking ahead to the fourth quarter, Hurricane Melissa, which is severely impacting Jamaica and other parts of the Caribbean, is widely expected to trigger one of the outstanding Cat Bonds. Further updates on this event and its impact will be provided in the next quarterly review.
Cat Bond market data is excluding life, mortgage and private Cat Bonds. Data as of September 2025. Source: Euler, Brokers
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