CAT BOND ISSUANCE REBOUNDS IN FOURTH QUARTER TO RECORD 6.3BN

The catastrophe bond and insurance-linked securities markets rebounded during the fourth quarter after several slow quarters, with issuances reaching a record $3.3bn, Artemis.bm has reported. The record quarterly total brought total outstanding market volume to $41bn at the end of the year, marking a new year-end high. Total issuance for the year was $11.1bn, the third highest annual total in Artemis’ records. The quarter’s volume marked only the second time since 2015 that issuances exceeded $2bn. Deals targeting catastrophe risks accounted for $2.4bn, while those addressing mortgage insurance risk totalled $880m. The quarter saw 15 total transactions with 28 tranches of notes. International multi-peril retrocessional cat bond deals accounted for $1.33bn, or 40% of total issuance.