Cat bond issuance volume drops in H1

Catastrophe bond issuance dropped to $7.4 billion in the first half of 2018 from $8.8 billion issued in the first half of last year as activity in North America halved, according to the PCS H1 2018 Catastrophe Bond Report.

The issuance volume dropped to $4.8 billion in North America in the first half of 2018 from $8.3 billion in the same period of 2017. The number of transactions in North America dropped to 17 from 27 over the period. At the same time, issuance in Latin America rose.

Latin America contributed with $1.3 billion to the first half 2018 issuance activity. Seven of 24 transactions—representing $2.6 billion in limit—covered non–North American risks in the first half of 2018.

Overall, sponsors completed 24 transactions in the first half of 2018—down from last year’s 29 but still higher than the 14 seen in the first half of 2016. Average transaction size, at $309 million, was steady year over year, after surging roughly 50 percent the first half of 2017 compared to the same period in 2016.

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