Global deal volume for insurance-linked securities (ILS) started the year strongly, setting a first-quarter record, according to the Bermuda Monetary Authority (BMA).

Ten new bonds were issued totalling $US2.2 billion ($2.9 billion), compared with 15 bonds a year earlier worth $US2.1 billion ($2.8 billion).

The average deal size also hit a first-quarter high of about $US222 million (297 million), up from $US138 million ($184 million) in the corresponding period last year.

Net issuance of bonds increased total outstanding capacity to $US26.5 billion ($35.4 billion), a 13% year-on-year increase.

Bermuda-issued ILS represented 69% of capacity, while the Cayman Islands was active with 20% and Ireland 9%.

The ILS market remains small relative to traditional supply, representing 5% of global reinsurer capital, the BMA says.

Most bonds cover North American perils, accounting for 68% of outstanding volume.

Six new ILS deals were listed on the Bermuda Stock Exchange in the quarter, while nine matured.