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It was an interesting year for cat bonds, from record high issuance in Q1 to a six-year low in Q4. Cory Anger, global head of ILS Structuring; Jordan Brown, analyst; Ryan Clarke, senior vice president and Sung Yim, senior vice president, all of GC Securities, report.
144A property and casualty (P&C) catastrophe bond primary issuance levels were uncharacteristically low in the fourth quarter, with an aggregate notional of $1.425 billion of 144A P&C catastrophe bonds issued, benefiting five sponsors. The 2015 full year primary issuance of 144A P&C catastrophe bonds totalled $5.917 billion from 25 transactions, benefiting 24 sponsors. 144A P&C risk capital outstanding as of December 31, 2015 totalled $22.640 billion, 0.56 percent lower than 2014’s all-time high in the 144A P&C catastrophe bond market (see Chart 1).
Chart 1: 144A P&C cat bond risk capital issued and outstanding
Cat Bonds, ILS, Cory Anger, Jordan Brown, Ryan Clarke, Sung Yim, GC Securities, North America