During the first quarter of 2013 two natural peril-exposed catastrophe bond transactions closed, for a total of USD520 million of issuance (1). This seemingly low level of primary issuance activity is deceiving, however, as the action in the capital markets and the influence of “non-traditional” capacity (a term that is rapidly approaching obsolescence) has never been higher.
1) This total reflects 144A natural peril exposed issuance only. Aetna also sponsored USD150 million Vitality Re bond, which is exposed to changes in medical benefits paid to Aetna policyholders.
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