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Q3 cat-bond issuance dips as investors eye reinsurance -report
October 20, 2015 / 12:54 PM / 2 years ago

Q3 cat-bond issuance dips as investors eye reinsurance -report

LONDON, Oct 20 (Reuters) - Catastrophe bond issuance fell in the third quarter as investors instead sought out less liquid products such as collateralised reinsurance, a report on Tuesday showed.

Third-quarter issuance was $650 million, taking year to date issuance of the bonds used to insure against earthquakes and other natural disasters to $4.8 billion, down a fifth on a year earlier, the report by Willis Capital Markets & Advisory said.

“The insurance-linked securities market is at an inflection point,” said Bill Dubinsky, head of insurance linked securities at WCMA, part of global risk advisor, insurance and reinsurance broker Willis Group.

“Despite the continued downward pressure on reinsurance rates, investor appetite remains strong and we’ve seen net new capital come into the re/insurance arena during 2015,” he added.

The third-quarter non-life issuance came from three deals, the report said: Ursa Re, a $250 million bond pegged to California earthquake risk; Bosphorus Re, tied to Turkish earthquake risk; and Acorn Re, linked to U.S. quake risk. (Reporting by Simon Jessop; Editing by Catherine Evans)

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