New catastrophe risk capital issued in the second quarter fell to its lowest level since 2011, according to the Bermuda Monetary Authority (BMA).

About $US1.6 billion ($2.1 billion) of insurance-linked securities (ILS) were issued, marking the first time in five years the total has failed to pass $US2 billion ($2.63 billion).

The BMA says it is “uncharacteristically low for this time of the year”.

There were 14 transactions in the quarter, averaging about $US116 million ($152.23 million) per deal – almost $US90 million ($118.46 million) below the 10-year average.

ILS issued in Bermuda represented 70% of the $US25.1 billion ($33.04 billion) total outstanding capacity at the second quarter’s end.

Half of transactions in the second quarter were privately placed, amounting to about $US304 million ($400.07 million).

The overall number of transactions in the quarter increased, but average transaction size fell to its lowest level since 2009.

There are seven ILS deals (110 tranches) listed on the Bermuda Stock Exchange, with an aggregate nominal value of $US18.3 billion ($24.08 billion).

Ten new ILS deals were listed on the exchange during the quarter, while nine matured.

Since Bermuda entered the market in 2009, 249 ILS bonds have been issued.

Risk covered by ILS represents just 4% of global reinsurer capital, which is estimated at about $US565 billion ($743.52 billion).