ILS issuance hit $5.6 billion in Q2: Aon
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Insurance-linked securities issuance totaled $5.614 billion across 19 transactions in the second quarter, nearly double the $2.813 billion issued in the year-earlier period, according to a report Friday from Aon PLC.
This year’s first-half total issuance of $8.5 billion broke the previous first-half record, set in 2017, by $181 million.
The average transaction size in this year’s first half was $282.3 million over 30 different issuances, compared with $241.8 million over 27 transactions in the first half of 2020.
The $5.614 billion of new issuance in the second quarter outpaced the nearly $4.5 billion in expected maturities, and “the momentum extended well beyond the capital redeployment and was robust for both investors and sponsors,” Aon said.
The second quarter was also strong for new players as there were five first-time issuers among the 19 sponsors that came to the market, and there were six new cedants in the first half of 2021.
The second quarter included Umigame Re Pte. Ltd. 2021-1, Tokio Marine Ltd.’s eighth catastrophe bond and its second in Singapore under its new ILS incentive scheme. Together, the three tranches provide $200 million of four-year coverage against Japanese typhoon and flood risks.
