A lot has changed in only a few weeks. After a slower than expected start in the first quarter, the catastrophe bond market has gained momentum quickly. If the current announced transactions close without upsizing, year-to-date issuance will reach $2.5 billion, according to data in the Artemis Deal Directory, with $1.7 billion of it coming [...]
reinsurance
This year’s catastrophe bond market began with a strong first quarter. Sponsors raised nearly $900 million, making it one of the three most active first quarters in the history of the catastrophe bond market. Many expect 2013 to be comparable to 2012 — and possibly even to 2007. To learn more, download our latest catastrophe [...]
Insurance-linked securities (ILS) transactions are not as expensive as they used to be. Five or six years ago, it could take months for a sponsor to complete a catastrophe bond, and it would cost as much as 50 basis points. Today, however, an experienced sponsor can complete a similar deal in weeks — at a [...]
We all know it’s there. Some industry participants whisper about it, and a few have actually seen it. I’m talking about the industry loss warranty (ILW) market. This opaque corner of the reinsurance industry provides a lot of capital flexibility, but improper execution can result in high unexpected costs later. No one has addressed many [...]
The new year may have only just begun, but that’s unlikely to slow speculation about what lies ahead. Will 2013 rival 2012, or will we see a post-spike dip as we did in 2011? Several factors are poised to influence catastrophe bond issuance in 2013. 1. A big first quarter: In the first quarter of [...]
In 2012, $5.9 billion in fresh capital flowed into the market through catastrophe bonds, making it the second most active issuance year in the history of the sector. Issuances surged 38 percent year over year, helped along by the $750 million Everglades Re transaction. Even with such a large deal in the market, there was [...]
