Record $1.34B in insurance-linked securities issued in first quarter

NEW YORK—More than $1.34 billion in insurance-linked securities were issued in the first quarter of 2012, according to a report issued Tuesday by London-based Willis Group Holdings P.L.C.’s Willis Capital Markets & Advisory unit.

The report, “ILS Market Update: Strong Start to 2012 Sees Record First Quarter Issuance,” said that set a new record for a first quarter The report said eight transactions from sponsors including Swiss Re Ltd., Munich Reinsurance Co., Liberty Mutual Holding Co. Inc. and Chubb Corp. accounted for more than $1.3 billion in new nonlife capacity in the market. That compared with $1.0 billion in new nonlife capacity issued during the same period of 2011. According to the report, the market had $13.3 billion of outstanding nonlife capacity at the end of the first quarter, two-thirds of which is exposed to U.S. hurricane risk of some form.

Bill Dubinsky, Head of ILS at New York-based Willis Capital Markets & Advisory, said the medium-term outlook for the market is encouraging.

“The market’s strong momentum from late 2011 has continued into the first quarter of 2012,” Mr. Dubinsky said in a statement. “Growth in insured exposures should continue to drive capital markets’ involvement in the catastrophe risk sector.”