Activity in the global insurance-linked securities (ILS) market surged to a first-quarter record this year, according to the Bermuda Insurance-Linked Securities update.

Issuance grew to $US1.6 billion ($1.7 billion) – more than double that of the first quarter last year – as 11 new bonds hit the market, the report says.

However, the average deal size of about $US144 million ($155 million) was the lowest for a first quarter, down from $US183 million ($197 million) in the corresponding period last year.

Merna Re V issued the largest deal – $US300 million ($323 million) – on behalf of State Farm for coverage of earthquakes in the New Madrid region of the US.

Bermuda accounted for more than 60% of global issuance volume during the quarter.

Activity fell 19% from the typically busy December quarter, when volumes are driven by January renewals, according to the report.

Global outstanding ILS also fell, to $US20 billion ($21.6 billion) from a record $US21 billion ($22.7 billion) at the end of last year, as maturing bonds exceeded issuances.

A total of 14 bonds matured with a notional value of $US2.6 billion ($2.8 billion).

The Bermuda Monetary Authority licensed four new special purpose insurers in the quarter.