Reinsurance broker Guy Carpenter has maintained a bullish outlook for the catastrophe bond market this year, despite a first quarter that was weaker than anticipated.

Just two bonds worth $US300 million ($321 million) in total risk capital were issued during the opening quarter, compared to three transactions worth $US575 million ($615 million) at the same point last year.

An outlook from Guy Carpenter and GC Securities has forecast greater activity later in the year, with the second and fourth quarters historically the most active for the cat bond market.

“Losses resulting from events such as the earthquake in Chile and European storm Xynthia have exerted a strain on reinsurers’ earnings but have not put cat bond layers in jeopardy,” Guy Carpenter said in a report.

GC Securities Global Head of Distribution Chi Hum predicts between up to 10 new transactions will be completed during the second quarter “across a wide variety of perils”.

Total issuance for the year is forecast to be between $US3-5 billion ($3.2-5.4 billion).