BI’s Article search uses Boolean search capabilities. If you are not familiar with these principles, here are some quick tips.

To search specifically for more than one word, put the search term in quotation marks. For example, “workers compensation”. This will limit your search to that combination of words.

To search for a combination of terms, use quotations and the & symbol. For example, “hurricane” & “loss”.

Login Register Subscribe

Cat bond issuance soared in 2020

cat bond

Catastrophe bond issuance hit record levels in 2020, more than doubling the issuance in 2019, Aon PLC said in a report Wednesday.

Last year, $11.02 billion in property cat bond limits was placed in the market, compared with $5.38 billion in 2019 and exceeding the $10.16 billion placed in 2017, the previous record year.

The 2020 placement total comprised 46 transactions completed by 36 sponsors with an average deal size of $239 million. That compared with 23 transactions by 21 sponsors with an average size of $234 million in 2019.

Insurers and large policyholders use cat bonds as an alternative or complement to traditional reinsurance programs.

“We still see a preference for cleanly structured deals from high-quality sponsors, and investors still seem to favor per occurrence over aggregate triggers as a result of the most recent loss events,” the Aon report said.





Read Next

  • Cat bond market need sustained inflow of sponsors: Fitch

    U.S.-based Fitch Ratings Inc. has said that catastrophe bond and insurance-linked securities sector needs a continuous flow of new sponsors to stay dynamic, Artemis reported. A lack of new sponsors along with high volume of scheduled maturities, higher losses, and investor retrenchment in collateralised reinsurance have slowed down the catastrophe bond market in recent years.