Network with Captive Review on LinkedIn

Follow Captive Review on Twitter

RSS

18th of May 2012

Last quarter of 2011 saw cat bond boom

Vicky Beckett 17/01/2012

In the final quarter of 2011 $1.99bn of catastrophe bonds were issued, according to Aon Benfield Securities.
 
The $1.99bn issuance was across nine transactions, which was 43% of full year activity.
 
National Union Fire Insurance Company of Pittsburgh was the most active sponsor of the quarter, closing a three-tranche structure amounting to $575m.
 
Equal to 2009 and 2010, the last quarter was the most active of the year for ILS issuance, with the majority of transactions ($1.5bn) providing sponsors with protection against US hurricane.
 
Seven of the nine transactions brought to market were based on an industry index trigger, one was based on a modeled loss trigger and one on an indemnity trigger, according to Aon Benfield.
 
Meanwhile, Aon Benfield Securities’ ILS Indices, calculated by Thomson Reuters, show a fourth quarter increase across the board, with the All Bond and BB-Rated Bond indices rising by 1.58 percent and 1.71 percent, and the US Hurricane Bond and US Earthquake Bond indices increasing by 1.68% and 0.73% respectively.
 
For the full year 2011, all indices posted gains, it was shown in the new Aon Benfield report, ‘Insurance-Linked Securities Fourth Quarter Update 2011.’
 
Paul Schultz, president of Aon Benfield Securities, said: “Strong investor demand for diversifying risk was witnessed in the fourth quarter of 2011, which facilitated a total upsizing of $800m across the ILS transactions brought to market.
 
“Secondary trading was also robust, with much activity in short-dated notes as investors sought to free up capital for new transactions.”
 
It is predicted both ILS issuance and secondary trading will remain active in the first quarter of 2012, given the strong pipeline for new deals.

Tags: 2011, Aon Benfield, Bonds, Captive, Catastrophe, Final quarter, Market, Paul Schultz, Securities, Thompson Reuters

Post a comment

Post a comment

Be the first to comment on this article!

Captive Insurance Database (CID)is the world's most comprehensive online source of captive market intelligence.

CID gives users instant access to the names of parent companies who currently own a captive. It also provides the names and contact details of captives’ risk managers, as well as the parent or ultimate parent companies’ address, country, CFO, CEO, and exchange.

CID also gives you the captive name, manager, licence and incorporation date and the type of captive the parent company is running.

CID will help you to:

•    Win more business proactively – Search from 5,700 captives and over 3,700 captive owners who you can offer your services to.


•    Increase profit and efficiency – Target specific captive owners and sponsors quicker, saving you time.


•    Build relationships
Access detailed contact information for each decision-maker. 

An annual CID licence costs just £1,195 + VAT.

Already a CID user?Login here.

Order a 2 year subscription and SAVE 25%
The licence includes full online access to CID and a free annual hardcopy of CID (worth £610).To find out more contact Nick Byrne on +44 (0) 20 7029 4027 or
cid@captivereview.com.

more//

Company and Ratings Search

Search A.M. Best's extensive database of life/health, property/casualty and insurance companies worldwide.

more//

Cell Company Guide

WELCOME TO THE Captive Review Cell Company Handbook 2009 – the second edition of our global directory of cell company jurisdictions. Since we last published this directory, the general attitude toward cell companies seems to have shifted up a gear. Whereas single-parent companies have long ruled the captive roost, a slight uptick in the formation of pure captives at the beginning of this year can’t hide the fact that growth in this market is still sluggish.

more//

Pellentesque feugiat arcu vitae lacus elementum in ullamcorper diam pulvinar. In odio massa, facilisis sed dignissim vel, vehicula ac diam. Curabitur tempor, quam nec aliquam tempus, dui lorem venenatis arcu

Mauris accumsan orci ut turpis placerat condimentum. Ut sit amet lobortis purus. Class aptent taciti sociosqu ad litora torquent per conubia nostra, per inceptos himenaeos.

CID