July 27th, 2009

Chart: 2Q2009 Cat Bond Issuance by Peril

Posted at 12:56 AM ET


Approximately 87 percent of second quarter issuances (USD704 million) had exposure to U.S. windstorm, U.S. earthquake, or both. Of this, USD576 million was exposed to both perils. USD150 million was exposed to U.S. windstorm only, with USD14 million exposed only to U.S. earthquake only. USD68 million (EUR50 million) in Euro-denominated issuances covered exposure to European windstorm and Turkish earthquake. In an environment in which investors are more sensitive to minimum return targets relative to diversification benefits, sponsors were inclined to access the catastrophe bond market for key peak perils.

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* Securities or investments, as applicable, are offered in the United States through GC Securities, a division of MMC Securities Corp., a US registered broker-dealer and member FINRA/SIPC. Main Office: 1166 Avenue of the Americas, New York, NY 10036. Phone: (212) 345-5000. Securities or investments, as applicable, are offered in the European Union by GC Securities, a division of MMC Securities (Europe) Ltd., which is authorized and regulated by the Financial Services Authority. Reinsurance products are placed through qualified affiliates of Guy Carpenter & Company, LLC. MMC Securities Corp., MMC Securities (Europe) Ltd. and Guy Carpenter & Company, LLC are affiliates owned by Marsh & McLennan Companies. This communication is not intended as an offer to sell or a solicitation of any offer to buy any security, financial instrument, reinsurance or insurance product.

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