Catastrophe bonds worth at least $US2 billion ($2.6 billion) were issued in the first quarter, easily surpassing the record set in the corresponding period last year, according to two separate reports.

Aon Securities says issuance of new bonds grew 31% to $US2.22 billion ($2.9 billion), increasing the insurance-linked securities (ILS) market’s outstanding placed risk to $US25 billion ($32.2 billion) at March 31.

“All sponsors of [first-quarter] issuances were repeat issuers, exemplifying the consistent value offered by the alternative capital market to insurers and reinsurers,” it says. “The varied transactions demonstrated ILS’ ability to offer a wide spectrum of risk-return profiles to investors in this diversifying alternative asset class.”

Aon Securities says there were 10 issues in the quarter, mostly for coverage of US storms and earthquakes, with the exception two bonds by Japanese issuers for a total of $US420 million ($541.7 million) to cover typhoons in that country.

A separate report from Willis Capital Markets & Advisory puts the record issuance at $US2 billion for the quarter, up 35%.

It says the US continues to dominate the ILS market, accounting for seven of nine transactions, with the only non-US issues being those from Japan.

“The headline figure shows a record level of non-life ILS was placed during the first quarter, highlighting the continued appetite for risk from investors and alternative reinsurance capital from ceding companies,” Head of ILS Bill Dubinsky said.

“Nonetheless, it is too early to say whether the strong first-quarter issuance will translate to a record-breaking year.”

All first-quarter issuance was by repeat sponsors, the report says. The first issue of the year was sponsored by Scor – a $US300 million ($384 million) bond from Atlas IX Capital covering storms and quakes in the US and Canada until January 2020.