Login Register Subscribe
Current Issue


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”.

Willis expects record catastrophe bond volumes this year


(Reuters) — The nonlife catastrophe bond market issued record volumes during the second quarter, Willis Capital Markets & Advisory said, adding that it expects full-year issuance to be between $8 billion and $9 billion.

Catastrophe bonds help insurers manage their exposure to natural disasters by transferring potential losses to investment funds. Investors receive a high yield on the bonds in return for agreeing to cover damages they consider unlikely.

A global slump in interest rates since the financial crisis has tempted more and more pension funds, institutional investors and high net-worth individuals to invest in catastrophe bonds and other capital market products.

Nonlife catastrophe bond capacity rose 36 percent to $4.5 billion in the second quarter, WCMA said, driven by an Everglades Re $1.5 billion bond for Florida's Citizens Property Insurance Corp. and two Sanders Re bonds totaling $950 million for Allstate Corp.

"We feel optimistic that 2014 will end up a record-setting year for the (catastrophe) bond market," WCMA Chief Executive Tony Ursano said, adding that he expected a "relatively quiet" third quarter and a "busy" final one.

WCMA is the capital markets arm of reinsurance broker Willis Re.