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Property/casualty cat bond issuance falls in Q1: Willis

Posted On: May. 7, 2019 10:30 AM CST

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There was $1.051 billion of new property/casualty catastrophe bond issuance across five transactions during the first quarter of 2019, according to a report Tuesday from Willis Towers Watson PLC.

The figure made Q1 2019 the lowest first quarter for total issuance in the past five years and is roughly one-third of the record-breaking $3.10 billion of activity observed in Q1 2018, Willis said.

U.S. wind was the chief peril covered with $450 million of capacity providing protection for pure U.S. wind peril and a further $550 million on peak multiperil protection, with around $50 million of diversifying multiperil protection also issued, the report said.

Cape Lookout Re 2019-1 will provide the North Carolina Insurance Underwriting Association with $450 million of protection against named storms and thunderstorms in North Carolina on an annual aggregate basis with Hannover Re acting as a ceding reinsurer and engaging in a retrocessional arrangement with Cape Lookout Re to provide the NCIUA with the coverage, Willis said.

Allstate’s Sanders Re II provides $300 million of coverage on both a per occurrence and aggregate basis, triggering at $2.75 billion and $3.54 billion, respectively, from U.S. named storms, earthquakes, severe weather and fire. The cat bond-backed layer will not cover any risks in Florida, Willis noted.

Willis also noted Pool Re’s Baltic PCC Ltd., a private placement that will deliver £75 million ($97.84 million) of cover against property damage caused by a range of terror threats, including explosive devices and cyberattacks, just the second cat bond domiciled in the U.K., following SCOR’s Atlas Capital U.K. 2018 last year.