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Intelligent ILS has its monthly talk with Paul Schultz, chief executive officer at Aon Securities, about the state of the ILS market.
The second quarter 2016 issuance level for insurance-linked securities (ILS) products was below the high capacity level that we saw in the first quarter, according to Paul Schultz, chief executive officer at Aon Securities.
“There have been some clear reasons for this. One is that clients have been looking for something a bit different. There have been lower volumes and also more aggressive activity on the part of traditional reinsurers. The tenure of some bonds has also been extended, leading to different timings—instead of two to three years, in some cases three to four years,” he says.
The Aon Securities ILS report, Insurance-Linked Securities Q2 2016 Update, shows that catastrophe bond issuance in Q2 stood at $800 million across five transactions—a relatively low figure during a historically active quarter for issuance. The period followed a record-breaking first quarter, where issuance reached $2.22 billion. Catastrophe bond issuance for the first half of calendar year 2016 therefore reached $3.02 billion.
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issuance, ILS, Paul Schultz, Aon Securities