Catastrophe bond appetite remains healthy
Insurers’ catastrophe bond appetite remained healthy during the first three months of 2011, according to Aon.
In a new study, Aon Benfield Securities, the group’s investment banking subsidiary, reports that several catastrophe bonds with exposure to the Japanese event may be impacted by the earthquake and related seismic activity.
Generally speaking, most catastrophe bonds with exposure to Japan earthquake risk traded lower in the quarter and, consequently, mark-to-market losses on these bonds drove total returns lower for the market.
However, according to the firm’s Insurance Linked Securities (ILS) All Bond Index, while Q2 2011 ILS issuance is likely to be lower than a year ago, a downward trend in ILS activity is not expected.
Aon Benfield Securities president, Paul Schultz, sums up: “Catastrophe bonds will continue to be an important source of risk transfer capacity for US perils, and potentially more important for non-US risks given recent global events.”
Category: Insurance News
Visited 1251 times, 1 so far today
Comments (0)
Trackback URL | Comments RSS Feed
There are no comments yet. Why not be the first to speak your mind.