Thirty-six insurance-linked securities deals listed on the Bermuda Stock Exchange make up one-third of the total global market issuance, the Bermuda Monetary Authority said Thursday.
Bermuda-listed ILS jumped to $5 billion in market capitalization through the first half of this year from $3 billion at the end of 2011, the BMA said in a statement.
The use of ILS by primary insurers has surged in 2012, according to industry experts.
In the first nine months of 2012, the BMA registered special-purpose insurers with total premiums of $595 million, including four SPIs underwriting more than $1.2 billion of catastrophe bonds, according to the statement.
In the second quarter of this year, Everglades Re Ltd. underwrote $750 million in cat bonds for Florida Citizens Property Insurance, the world’s largest cat bond deal, the BMA said in the statement.
The catastrophe reinsurance market may be about to undergo a “significant strategic development,” according to a report issued Monday by Willis Group Holding P.L.C.'s Willis Capital Markets & Advisory division.