The Bermuda Stock Exchange (BSX) cemented its dominance of the insurance-linked securities (ILS) market in 2025, capturing more than 93% of global issuance as catastrophe bond activity surged to record levels amid elevated natural disaster risks.
The exchange added 209 new ILS listings during the year, a 34% increase from 2024, bringing total ILS securities listed on the BSX to 746. The growth came as the global reinsurance market continued channeling capacity through capital markets instruments to meet rising demand for disaster coverage.
Total nominal outstanding value of ILS listed on the exchange rose to US$65 billion, up 16.4% year over year, reflecting sustained investor appetite for reinsurance-linked returns.
Catastrophe bond issuance ballooned to US$25.6 billion in 2025, eclipsing the 2024 record of US$17.7 billion by 45%, market data shows. The total stemmed from 122 transactions, surpassing the previous record of 95 set in 2023.
The year also saw 15 first-time sponsors enter the market, industry figures reveal, reflecting broader participation in the asset class as traditional reinsurers and corporations sought alternative risk transfer mechanisms.
Of the 746 ILS securities listed on the exchange, 520 provided catastrophe peril reinsurance coverage, the BSX said. BSX-listed instruments represented more than 93% of global issuance in that segment.
Market participants used the exchange to raise capital for climate-related risks across Europe, Asia and the Americas during 2025, exchange data indicates. The year also saw the listing of new cyber catastrophe bonds, reflecting the emergence of cyber risk as a tradable asset class within reinsurance markets.
"BSX has led the way in listing ILS vehicles for more than a decade, and we are proud to have not only maintained but strengthened our leadership position in 2025," said Greg Wojciechowski, president and chief executive of the exchange, in a report from the Royal Gazette.
The exchange launched a new trading, clearing, settlement and depository platform in March 2025 built on proprietary technology developed by its parent company, Miami International Holdings. The upgrade is intended to allow the exchange to expand its product range and respond more quickly to changing market demand, the company said.
Across all asset classes, the BSX closed the year with 1,209 securities listed. The number of debt securities listed fell to 201 from 240 in 2024, though new international debt listings rose 17.6% to 40, including aviation-related asset-backed securities, corporate debt and high-yield bonds.
Trading volumes and values in Bermuda's domestic equity market declined from 2024, a trend the exchange attributed largely to merger activity. The RG/BSX Index climbed 28% over the year, and total equity market capitalization on the exchange increased to US$297 billion.
