During Q2 2016, $1 billion of non-life catastrophe bond capacity was issued across six transactions, taking the total market issuance for H1 2016 to $2.8 billion, according to an insurance-linked securities (ILS) market update from Willis Capital Markets & Advisory.
Three out of the six catastrophe bond sponsors were new issuers, including Security First, United Insurance and Credit Suisse. USAA, Munich Re and Allianz Risk Transfer were all repeat sponsors.
Bill Dubinsky, head of ILS at Willis Capital Markets & Advisory, said: "Despite the strong Q1 2016 issuance, Q2 take up has not been as fervent compared to previous years.”
“However, sponsors continue to engage with ILS investors through various other products. Decreased outstanding volume created tighter risk spreads in Q2 for this type of ILS and better relative value for ceding companies versus private deals. We expect this relative value gap to drive increased issuance of liquid ILS in response in the coming quarters.”
