November 2, 2014

A lazy summer for ILS: Artemis Q3 2014 Catastrophe Bond & ILS Market Report

As is typical, the third-quarter saw a summer lull with the risk capital issued in new cat bonds and ILS during Q3 only hitting $364 million, according to the Artemis Deal Directory. The third-quarter, which occurs during the first three months of the U.S. hurricane season is often characterised by slower issuance as the market waits to see whether any storms develop. Q3 is also after the key June/July renewals, when many cat bonds are renewed and issued.

Artemis recorded $364 million of new risk capital issued by 5 transactions during Q3. Three of the deals in Artemis’ data for Q3 would be considered ‘cat bond lite’ transactions, but still a range of diversification came to market which will have been welcomed by investors at this slower time of the year.  No records have been broken in the third-quarter, yet the outstanding catastrophe bond and ILS market sat at a very impressive $22.921 billion at the end of September. It is expected that issuance will pick up towards the end of the year with more new sponsors and some renewal cat bonds currently anticipated.

Artemis is the leading, freely accessible source of timely, relevant and authoritative news, analysis, insight and data on the insurance-linked securities, catastrophe bond, alternative reinsurance capital and related risk transfer markets. The Artemis Deal Directory is the leading, freely available source of information, data and analysis on issued catastrophe bond and insurance-linked securitisation transactions.

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