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”.
Catastrophe bond issuance remained buoyant in the first half of this year, with $7.7 billion in new issuance following a record year in 2021, according to a report released Friday by Moody’s Investors Service Inc.
Activity is expected to be robust for the remainder of 2022, Moody’s said.
First-quarter new issuance totaled $3.2 billion, the third-highest first-quarter total ever, behind 2020 and 2018.
Momentum continued into the second quarter, with new issuance of $4.7 billion, and Moody’s said that “with traditional reinsurance prices still rising, we expect issuance to remain strong during the remainder of the year.”
Last year saw a record $13.5 billion of new issuance, up from $11.4 billion in 2020, and more than double the total for 2019.
Issuance this year has centered around physical catastrophes, Moody’s data showed. Bonds providing coverage for international multi-peril and U.S multi-peril together have comprised 40% of issuance.
U.S. earthquakes have accounted for another 15%, followed by U.S named storm and hurricane at 6% and Japan earthquake at 5%.
Moody’s said it expects non-catastrophe issuances, such as terrorism risk and health care risk, to increase as the ILS market continues to expand.
On Thursday, Aon PLC said first-half issuance reached $7.94 billion and that the market remains strong “as insurers and reinsurers increasingly turn to alternative capital markets to supplement traditional reinsurance.” It added that “looking ahead, the pipeline remains robust.”