4 April 2018Alternative Risk Transfer

Cat bond issuance jumps to $3.1bn in Q1 ‘18

Insurers and reinsurers sponsored approximately $3.1 billion in catastrophe bonds in the first quarter of 2018, up 34 percent from the first quarter of 2017, according to data analytics provider PCS.

Sponsors completed eight transactions—the same amount as last year. The average transaction size climbed significantly for the second year in a row, reaching $385 million (from almost $290 million).

Only $500 million of more than $3 billion in capital raised covered the US. Furthermore, of the eight transactions that came to market, a collection of four accounted for more than a third of capital raised, covered Latin America, and used parametric triggers.

Among large transactions was the IBRD CAR series (covering Latin America) providing close to $1.4 billion in protection for risks in Chile, Colombia, Mexico, and Peru—all on a parametric basis.

Join us at Intelligent Automation in Insurance - April 26th 2018, London:  Book now.

More of today's news Swiss Re CEO: SoftBank not to become an anchor shareholder Global Q1 insured cat losses below average IAT Insurance enters surety market with IFIC acquisition Chubb reports $380m cat hit for Q1 ‘18 V3 Insurance replaces founding president/CEO Rivera

Don't miss our insurtech email newsletter - sign up today

Already registered?

Login to your account

To request a FREE 2-week trial subscription, please signup.
NOTE - this can take up to 48hrs to be approved.

Two Weeks Free Trial

For multi-user price options, or to check if your company has an existing subscription that we can add you to for FREE, please email Elliot Field at efield@newtonmedia.co.uk or Adrian Tapping at atapping@newtonmedia.co.uk


More on this story

Alternative Risk Transfer
17 May 2018   Three experienced ILS executives including one of the founders of Hiscox-owned Kiskadee Investment Managers and a former managing director of RenRe-owned DaVinci Reinsurance have formed a new hedge fund-backed ILS venture, according to a May 16 Reuters report.
Insurance
25 October 2017   Sponsoring transparent and understandable cat bonds—including bonds that use parametric triggers—could become one of the most effective risk transfer instruments for emerging economies to resolve the developing issue of the protection gap at the macro level, Kirill Savrassov, CEO of Phoenix CRetro, a niche Bermudian ILS specialist, told Baden-Baden Today.