A high-volume of maturities coupled with a diverse and steady stream of new issuances created a dynamic catastrophe bond environment in the first six months of 2015.
The first quarter of each year is particularly active in terms of issuance for the property/casualty (P&C) catastrophe bond market. USD 1.49 billion of 144A P&C catastrophe bond limit in the First Quarter of 2015 was successfully placed with investors, which is the highest first quarter volume in history, with issuance of USD 1.49 billion. Furthermore, the highest quarterly volume of 144A P&C catastrophe bonds matured in the first quarter, returning USD 3.544 billion of principal to investors.
While the first quarter is usually quite active, the second quarter of each year typically has the highest activity in terms of issuance for the P&C catastrophe bond market. The second quarter of 2015 was no different, with USD 2.35 billion of 144A P&C catastrophe bond limit successfully placed with investors. Furthermore, the quarterly volume of 144A P&C catastrophe bonds maturing in the second quarter returned USD 1.606 billion of principal to investors.
The combined maturities in First Quarter and Second Quarter 2015 are the highest volume of 144A P&C catastrophe bonds to mature in the first half of the year. As of July 1, 2015, USD 21.559 billion of P&C 144A catastrophe bond risk capital was outstanding.
New Issuances in Review (Repeat Issuers)
Fourteen repeat sponsors re-entered the market in the five months ending May 31, each issuing either replacement coverage or additional limit in advance of the North Atlantic wind season. Many of the repeat sponsors sought to continue to take advantage of attractive pricing.
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