Cat bonds & related ILS hit record $8.5bn in Q2 2021: Report

Cat bonds & related ILS hit record $8.5bn in Q2 2021: Report

Activity in the catastrophe bond and related insurance-linked securities (ILS) market accelerated once again in the second-quarter of 2021, with the three-months seeing an amazing $8.5 billion of new risk capital concerned market, according to the most current report and information from Artemis.Our latest quarterly report on the catastrophe bond and associated insurance-linked securities (ILS) market is readily available for you to download now.
The report, Q2 2021– On track to break multiple records, analyses a record second-quarter including a spectacular, simply under $8.5 billion of new cat bond and associated ILS issuance and takes a look at the composition of deals issued during the three-month duration.
Our brand-new report likewise explores concerns associated with pricing and looks at the thinner multiples-at-market of Q2 2021 144A catastrophe bond issuance.
This last quarter was the very first time in the markets history, catastrophe bond and associated ILS issuance surpassed $8 billion in a single quarter.
As a result, Q2 2021 has actually set a brand-new quarterly record for issuance, at $8.5 billion.
This incredible level of brand-new reinsurance and retrocession risk capital was provided through 30 deals consisting of 66 tranches of notes.
Of the record breaking Q2 issuance overall, a considerable nearly $6 billion, or more than 70%, covered home catastrophe dangers.
Our data reveals that this is behind only Q2 2017, a duration in which a substantial $6.4 billion of quarterly issuance covered catastrophe threats.
As at the end of H1 2021, feline threat issuance has reached a new high of more than $8.5 billion for the first six months of this year, which is a little higher than the record for residential or commercial property feline bonds issued in the first-half previously set in H1 2017.
Year-on-year, cat bond and ILS issuance increased by roughly $4.87 billion, guaranteeing that for the first time ever, H1 issuance has actually gone beyond the $10 billion mark.
In fact, integrated with robust investor need for reinsurance-linked returns and sponsor hunger for protection in Q1, the $8.5 billion of issuance witnessed in Q2 now takes H1 2021 total issuance of catastrophe bonds and related insurance-linked securities (ILS) to a massive $13.12 billion.
To put this into context, more than $13 billion of issuance at the midway phase of the year suggests that 2021 is currently the third most active full-year on record, behind only the $16.4 billion and $13.9 billion tape-recorded in 2020 and 2018, respectively.
As need for collateralized reinsurance persists and the feline bond market offers particularly appealing prices conditions, we expect issuance to remain strong through the full-year.
All of our cat bond market charts are current and consist of the most recent quarter of issuance.
Stay tuned to Artemis as we move into the second-half of 2021.
There are currently three disaster bonds set up for July and were conscious of another impending with a 5th also possible in the next couple of weeks. So we might be in for another hectic quarter. As ever, well information every transaction we see in our Deal Directory.
Well keep you upgraded on all catastrophe bond and related ILS transaction issuance, as well as progressing patterns in the feline bond and insurance-linked securities (ILS) market.
For full details of second-quarter 2021 feline bond and related ILS issuance, consisting of a breakdown of offer circulation by elements such as perils, sets off, expected loss, and prices, as well as analysis of the issuance trends seen by month and year.
Download your complimentary copy of Artemis Q2 2021 Cat Bond & & ILS Market Report here
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For copies of all our disaster bond market reports, visit our archive page and download them all.

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