Cat bond market sets new record as 12-month issues soar


The Cat Bonds and Insurance-Related Securities (ILS) market set a new record, the amount of issuance we recorded in a twelve-month period ending in late September 2021 hit a new record.

The catastrophe bond market has seen high levels of activity over the past year, helped by both investor appetite for more liquid and transparent forms of insurance-linked securities (ILS), as well as by ceding companies’ appetite for reinsurance and retrocession to higher levels. catastrophic bonds tend to hedge.

For the twelve months ended September 30, 2021, the Artemis Deal Directory recorded more deal flow than in any other 12 month period since we started tracking this market.

Bearing in mind that the Transaction Directory has been online since 1999, but the Transaction List has been under construction since late 1996, we believe this is a record 12 month period for the catastrophic bond market and related ILS, unprecedented in terms of issuance. .

In total, including every transaction in our transaction directory, so 144a real estate catastrophe bonds, catastrophic life / health / specialty bonds, private catastrophic bonds and ILS mortgage transactions, the total issuance over 12 months at the end of September reached 21 , $ 9 billion in venture capital.

Subtracting the mortgage ILS transactions we recorded, which at $ 7.12 billion was also a record 12-month issuance rolling through the end of the third quarter, the total drops to $ 14.73 billion. dollars, which is also a record.

These $ 14.73 billion in issues, over a rolling 12-month period and comprising 144a real estate cat bonds, private cat bonds and life / health / specialty cat bonds, are well ahead of previous records, thanks at the rate of emission observed in 2020 and 2021 to date.

If we subtract the nearly $ 735 million in private catastrophic bonds and the $ 570 million in ILS life / health / specialty lines in the form of catastrophic bonds that we recorded, leaving nothing but pure real estate catastrophe bonds of the rule 144a, we always get a 12 month continuous emission. a figure of over $ 13.4 billion, which is again a record.

This bodes well for the show for the whole of 2021, which, as we explained the other day, is also on track to hit a new record high.

The focus on catastrophe bonds and higher grade, more liquid and more transparent structured bond transactions remains high and brokers expect a good end to the year ahead.

Which suggests that we could see eclipsed annual records on almost any metric in 2021, paving the way for another busy year in 2022.

Stay tuned to Artémis keep abreast of all catastrophe bond issues and associated ILS transactions, as well as evolving trends in the catastrophic bond and insurance-related securities (ILS) market.

Third Quarter Catastrophe Bonds and ILS Market Report 2021For more details on the third quarter 2021 catastrophic bond issues and associated ILS, including a breakdown of trade flows by factors such as risks, triggers, expected losses and prices, as well as an analysis of emission trends observed by month and year.

Download your free copy of Artemis Third Quarter 2021 Catastrophic Bonds and ILS Market Report here.

For copies of all of our Cat Bond Market reports, visit our archives page and download them all.

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