The global insurance-linked securities (ILS) market grew 38% to a record issuance volume of $US4.6 billion ($5.2 billion) in the second quarter of this year, according to a Bermuda Monetary Authority report.

Bermuda accounted for $US4.2 billion ($4.8 billion) of the market, or 14 of the 17 new bonds issued in the three months.

The largest ILS of $US1.5 billion ($1.7 billion) was issued by Bermudan special-purpose insurer Everglades Re on behalf of Citizens Property Insurance, to cover Florida hurricanes.

The average bond size was $US273 million ($310.6 million), a second-quarter record, up from $US223 million ($253.7 million) in the corresponding period last year.

Outstanding ILS stock worldwide stood at a record $23.2 billion ($26.4 billion), with eight bonds with a notional value of US$1.5 billion ($1.7 billion) maturing in the quarter.

The Bermuda Monetary Authority licensed 12 special-purpose insurers in the three months.