Cat bond issuance jumps to $3.1bn in Q1 ‘18

Insurers and reinsurers sponsored approximately $3.1 billion in catastrophe bonds in the first quarter of 2018, up 34 percent from the first quarter of 2017, according to data analytics provider PCS.

Sponsors completed eight transactions—the same amount as last year. The average transaction size climbed significantly for the second year in a row, reaching $385 million (from almost $290 million).

Only $500 million of more than $3 billion in capital raised covered the US. Furthermore, of the eight transactions that came to market, a collection of four accounted for more than a third of capital raised, covered Latin America, and used parametric triggers.

Among large transactions was the IBRD CAR series (covering Latin America) providing close to $1.4 billion in protection for risks in Chile, Colombia, Mexico, and Peru—all on a parametric basis.

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