Cat bond issue in Q1 2022 continued 2021 boon: Gallagher Re

Cat bond issue in Q1 2022 was a continuation of the boon year that was 2021, according to Gallagher Re’s latest 1^st View.

This was, said the firm, seen in both terms of deal count and the total volume of issuance.

These numbers reflect the latest data from our insurance-linked securities (ILS) focused sister site, Artemis, which show that catastrophe bond and related ILS issuance surpassed $3.5bn in the Q1 2022, taking the outstanding market to a new record high of approximately $37.5bn.

Wrote Gallagher Re: “The cat bond instrument remains attractive to investors, with industry index cat bonds continuing to attract narrow margins and favourable pricing for sponsors.”

It added: “Whilst the collateralised reinsurance and sidecar markets remain relatively stagnant, adjustments to contract terms and revisions to collateral release mechanics designed to be mutually acceptable, suggest progression in the space.”

Gallagher Re was buoyant about the future prospects of the market, writing that it continues to see potential.

It wrote: “We continue to see interest from existing and new investors and cedants in expanding the range of risks suitable for ILS investment.”

Artemis’ latest quarterly report on the market, Q1 2022 – Outstanding market hits new high after strong first quarter, is available to download now for free, and examines a busy quarter for the marketplace on the back of a record-breaking year.