Q4 2014 Cat Bond & ILS Market Report – A busy finish to a record year for ILS

by Artemis on January 2, 2015

Today we publish our latest quarterly report on the catastrophe bond and insurance-linked securities (ILS) market. The report titled ‘Q4 2014 Cat Bond & ILS Market Report – A busy finish to a record year for ILS‘ also includes a brief review of the record year of issuance.

 Q4 2014 Catastrophe Bond & ILS Market Report - A busy finish to a record year for ILSThis report (PDF file) reviews the catastrophe bond and insurance or reinsurance-linked securities (ILS) market at the end of 2014, looking at new risk capital issued during the fourth-quarter, the composition of transactions completed, as well as a brief review of the full-year 2014.

The fourth-quarter of 2014 lived up to investors expectations, with a range of diverse transactions coming to market and total issuance reaching $2.16 billion, according to the Artemis Deal Directory.

The fourth-quarter is often a busy one and 2014 has been no different, as a number of large cat bonds came to market in advance of the January reinsurance renewal season. The $2.16 billion plus of new risk capital issued has also helped the full-year issuance total for 2014 to reach a new record at $8.8 billion.

Artemis recorded $2.16 billion of new risk capital issued through 9 transactions during Q4, showing a focus on large deals. The deals brought some welcome diversification to investors, as well as the return of a number of repeat and valued cat bond sponsors showing their commitment to the market.

The fourth-quarter itself has not broken any records, we make it the second busiest Q4 on record. However, 2014 is now the busiest year on record for the catastrophe bond and ILS market, setting us up for further issuance in 2015 as many vintage deals mature and reports from brokers suggest a strong deal pipeline for the first-half of 2015.

2014 catastrophe bond and ILS issuance reached $8.8 billion and at the end of the year the outstanding catastrophe bond and ILS market stood at just over $25 billion.

Download your copy of the full report in PDF format here.

Don’t forget that you can view the breakdown of the outstanding catastrophe bond and ILS market, as well as other statistics on the market and its growth, using our ILS Market Dashboard and range of ILS market charts, statistics and graphs.

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