Bermuda recorded a 20% increase in insurance-linked securities (ILS) issues last year.

The Bermuda Monetary Authority says the territory accounted for 88% of global issuance, which grew 15% to $US8.8 billion ($11.28 billion) for the year.

The ILS market still only accounts for about 4% of reinsurer capital.

The authority says although there are concerns investors may abandon ILS as the US Federal Reserve normalises interest rates, this does not seem to be happening.

Money managers appreciate that ILS returns are not linked to traditional investment markets, so see a place for the securities in their portfolios, it says.