In June Munich Re was forced to pull the plug on its latest catastrophe bond issuance. While the reasons are not completely clear, this event still represents a defining moment for the ILS markets, as Intelligent Insurer discovers.
While many market practitioners may have played down the significance of a cat bond issued by the world’s largest reinsurer being pulled, make no mistake about it, this represents an important moment for the development of the insurance-linked securities (ILS) markets.
Munich Re was trying to sell a bond reportedly worth around $100 million, seeking retrocessional protection from US hurricanes and Australian cyclones.
The leading reinsurer was apparently disappointed by investor interest in its Queen Street X Re bond at the price it was seeking, meaning the deal would not have achieved the size it wanted.
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ILS, Munich Re, Queen Street X Re