Demand for reinsurance and retrocessional safety from cedants, in addition to a slew of latest first time market entrant sponsors, have helped the worldwide disaster bond market execute on $5.2 billion of latest issuance within the second-quarter of 2022, in line with Artemis’ newest quarterly report.
The Artemis Q2 2022 Disaster Bond and associated insurance-linked securities (ILS) Market Report, out there to obtain now, examines the just about $5.2 billion of danger capital issued within the quarter.
Disaster bond market exercise within the second-quarter of 2022 was dominated by issuance of full 144a property disaster danger offers, accounting for almost all, simply over $4.9 billion of the issuance Artemis recorded within the interval.
This displays a difficult reinsurance market surroundings, in addition to demand from new market entrants as first time sponsors.
Actually, we recorded seven new disaster bond sponsors coming to market in Q2 2022, as new entrants regarded to the capital markets to fill their reinsurance and retrocession wants, at a time when re/insurer danger appetites to retain nat cat danger have declined.
24 disaster bond transactions, comprised of 35 tranches of notes, offered reinsurance or retrocession safety in opposition to quite a lot of perils for sponsors in the course of the second-quarter of 2022. When mixed with the three non-public ILS offers, Q2 2022 issuance reached roughly $5.2 billion.
Whereas this was a decline on final yr, it was nonetheless the third-strongest Q2 of cat bond issuance we’ve ever recorded, making first-half 2022 issuance very robust once more, at virtually $8.7 billion.
Issuance of latest disaster bonds within the second-quarter of 2022 exceeded the typical for the interval by greater than $1.1 billion.
This helped to take the excellent cat bond market to a brand new file excessive of $38.2 billion, as of the top of June.
We view this as a very robust end result for a market that has been coping with pressures from the macro-environment and its results on broader capital markets and investor urge for food.
All of our disaster bond market charts and visualisations are up-to-date, so embody this newest quarter of issuance information.
We’ll maintain you up to date on all disaster bond and associated ILS transaction issuance as 2022 progresses, in addition to evolving tendencies within the cat bond, insurance-linked securities (ILS) and collateralised reinsurance market.
For full particulars of first-quarter 2022 cat bond and associated ILS issuance, together with a breakdown of deal stream by elements akin to perils, triggers, anticipated loss, and pricing, in addition to evaluation of the issuance tendencies seen by month and yr.
Obtain your free copy of Artemis’ Q1 2022 Cat Bond & ILS Market Report right here.
For copies of all our disaster bond market reviews, go to our archive web page and obtain all of them.
