The insurance-linked securities market has hit a new high with of nearly $27.19 billion in the first quarter of the year.

The figure for catastrophe bonds and ILS features in a report by industry news website Artemis.bm and beat the previous 2016 record by $377 million.

The first quarter of this year was also the strongest opening period in terms of new risk capital issued since the cat bond and ILS markets’ inception around 20 years ago.

It is the fourth first quarter in a row that issuance records have been broken, with $2.76 billion of new risk capital coming to market.

Bermuda is the epicentre of the industry and about 70 per cent of global issuance is listed on the Bermuda Stock Exchange.

Artemis said: “For the first time in the market’s history, Latin American property catastrophe risk featured in the first quarter — a $5 million transaction from first time sponsor Terra Brasis Re.

“US and unknown property catastrophe risks also featured in quarter one bringing a combined $406 million of new risk capital to the market.”

Around 25 per cent of issuance in the first three months of the year, which amounted to around $620 million, covered US risks, including named storms, earthquakes, severe thunderstorms, volcanic eruption and meteorite impact risks.

The report said: “US earthquake and US named storms protection also featured in separate stand-alone deals in quarter one, as did $200 million of medical benefit claims protection from Aetna.

“The remaining $525 million, or 19 per cent of quarter one issuance, covered multiple international perils.”

A record $1.07 billion of issuance in January came from six deals, making it the busiest month of the quarter in terms of transaction numbers.

February saw the lowest issuance of the quarter with $248 million coming to market from three deals.

The Artemis report said: “In terms of risk capital issued, March was the most active month, seeing a record $1.45 billion of issuance from five deals.”

The report added: “Record levels of new risk capital issued in both January and March more than offset a slow February in 2017 resulting in first quarter catastrophe bond and ILS issuance being roughly $1.4 billion above the ten-year average.”

Artemis said February is traditionally the quietest month of the quarter — but that the $248 million new risk capital recorded was abound $52 million below the ten-year average.

The average transaction size for the quarter was about $197 million across 14 deals, above the ten-year average of $178 million and six above the average number of transactions completed.

The quarter was a mix of private and traditional catastrophe bond transactions and the 14 deals amounted to the second most active first quarter in terms of deal numbers in the last ten years.