Investor demand continues to outstrip new issuance


2014 continues to prove that the rapidly expanding ILS market is here to stay. Paul Schultz, CEO at Aon Benfield Securities, discusses with Intelligent Insurer the trends driving the market forward and how investor demand is making the market ever more attractive to cedants.

With new sponsors entering the market each month, and some of the largest bonds on record reaching the market, it’s unsurprising that activity in the first half of 2014 is above expected levels.

In April four new bonds were issued: a €190 million ($259 million) European windstorm bond by Generali; a $450 million deal by Everest Re covering to North American wind and earthquake; and two tranches of coverage providing US windstorm coverage to Heritage Property and Casualty Insurance, worth $50 million and $150 million, respectively.

“We’ve certainly seen a continuation of strong issuance this season,” says Paul Schultz, CEO at Aon Benfield Securities. “While we expect the first half of every year to be active, the activity in the last four to six weeks has been even higher than usual.”

ILS, Intelligent Insurer, Paul Schultz, Aon Benfield Securities

Intelligent Insurer