Reinsurance News

Wave of new sponsors help Q2 catastrophe bond issuance hit $5.2bn: Report

5th July 2022 - Author: Luke Gallin

Artemis’ second-quarter 2022 catastrophe bond and related insurance-linked securities (ILS) market report pegs issuance at approximately $5.2 billion for the period, which takes the outstanding market to a new high of $38.2 billion.

catastrophe-bond-ils-report-q2-2022-artemisThe Artemis Q2 2022 Catastrophe Bond and ILS Market Report, which examines 27 transactions from a range of repeat and new sponsors, is now available to download.

At $5.2 billion, issuance in the second-quarter was the third highest for the period since the market’s inception, and helped H1 2022 issuance reach an impressive $8.7 billion.

The robust volume of transactions witnessed in the quarter has also resulted in the outstanding market hitting a record high of $38.2 billion, as of the end of June 2022.

Once again, issuance in the quarter was dominated by traditional 144a property catastrophe risk deals, accounting for a significant $4.9 billion of total risk capital brought to market.

AmericanAg - Global Reinsurance Solutions

New sponsors played a key role in Q2 2022. Overall, seven sponsors entered the cat bond market for the first time in the second-quarter, as they looked to the capital markets for their reinsurance or retrocession needs amid a challenging traditional reinsurance market landscape.

The first time sponsors were Peak Re, Canopius Group, The Hanover Insurance Group, Core Specialty, SureChoice Underwriters Reciprocal Exchange, Kin Insurance, and Weston Property and Casualty
Insurance Company.

Combined, new and repeat sponsors issued 24 catastrophe bond transactions, comprised of 35 tranches of notes in Q2, while three private, or cat bond lite deals also featured, as did one mortgage ILS transaction.

Year-on-year, issuance did decline in the second-quarter, but came in above the ten-year average for the period by over $1.1 billion.

For full details of first-quarter 2022 cat bond and related ILS issuance, including a breakdown of deal flow by factors such as perils, triggers, expected loss, and pricing, as well as analysis of the issuance trends seen by month and year.

Download your free copy of Artemis’ Q1 2022 Cat Bond & ILS Market Report here.

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