The Bermuda Stock Exchange (BSX) has cemented its role as a pivotal platform for insurance-linked securities (ILS) and catastrophe bonds, reaching an impressive milestone of $70.5 billion in listed instruments by mid-2026. This substantial increase underscores the exchange's growing significance in the global financial landscape, particularly within the specialized reinsurance sector.
Bermuda Exchange Records Unprecedented Growth in ILS and Catastrophe Bond Portfolio
In the second quarter of 2026, the Bermuda Stock Exchange (BSX) observed a notable escalation in its market share for catastrophe bonds and other insurance-linked securities. By June 30th, 2026, the total value of ILS-related listings on the exchange soared to an all-time high of $70.5 billion. This figure represents a continued upward trajectory, building upon the $68.5 billion recorded at the end of the first quarter of the same year.
This surge is largely attributed to a record-setting period for catastrophe bond issuances, alongside the listing of numerous new private catastrophe bond and ILS transactions on the BSX. During the first six months of 2026 alone, the exchange facilitated the listing of 146 new ILS securities and program structures, collectively valued at nearly $16.5 billion. Of this amount, approximately $16.12 billion was linked to catastrophe bond notes and programs, with the remaining portion stemming from a single mortgage ILS issuance within the year.
As of the close of the second quarter, the BSX proudly hosted 775 catastrophe bond and associated ILS listings. Breaking this down further, 565 listings were directly related to catastrophe bonds, with 562 covering catastrophic perils and three addressing terrorism and financial guarantee risks. The remaining 202 listings comprised mortgage ILS deals and select catastrophe bond preference shares.
Specifically, the value of catastrophe bond listings on the BSX climbed to $62.6 billion by mid-2026, up from nearly $60.9 billion at the end of March. This accounts for an impressive 95.4% of the 144A and private catastrophe bond market, reflecting a slight increase from the just under 95% market share held at the conclusion of the first quarter. This consistent expansion, even amid record levels of catastrophe bond issuance, unequivocally highlights the BSX's indispensable function within the insurance-linked securities domain.
The sustained growth of the Bermuda Stock Exchange in the ILS and catastrophe bond markets sends a clear signal about the increasing demand for sophisticated risk transfer solutions. This development offers a promising outlook for investors seeking diversified portfolios and for insurance entities aiming to manage their exposures more effectively. It also underscores Bermuda's enduring appeal as a strategic jurisdiction for capital markets, driven by its robust regulatory framework and specialized expertise in reinsurance and alternative risk financing.
