Daily Insurance Industry News
Daily Insurance Industry News
Sunday 26th of May 2019
May 15, 2012

Cat bond issuance achieves new record

by Gill Montia

Story link: Cat bond issuance achieves new record

The first quarter of 2012 was the most active first quarter on record for the global catastrophe bond market, according to GC Securities, part of the Marsh & McLennan group.

During the period, $1.34 billion of risk capital was issued through eight transactions, exceeding last year’s record of $1.02 billion for Q1.

GC Securities also found that:

Total risk capital outstanding increased by 5.2% from $12.14 billion to $12.77 billion.

Catastrophe bond redemptions amounted to the equivalent of $711.3 million of risk capital.

Issuance was significantly more diverse than the year before, particularly in terms of types of exposure, event structure and risk/return profile.

Commenting on the data, Chi Hum, global head of ILS distribution at GC Securities, says: “The level of issuance achieved in the first quarter demonstrates that both protection sellers and buyers are seeing strong value in the insurance-linked securities market.

“Record issuance combined with new perils, structures and investors illustrate the continued growth and maturity of the catastrophe risk asset class.”


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