Guy Carpenter have released their third-quarter 2009 catastrophe bond update today. As ever the report looks back at the last three months of market activity including issuance, redemption, outstanding risk capital in the market, how issuance’s were composed, a brief look at industry loss warranties and an outlook for the fourth quarter.
As you’ll be aware if you’re a regular visitor to Artemis there have only been two new issuance’s in the third quarter, these resulted in $412m of new capital in the market. Despite this seeming quiet it was actually up by a third relative to the same quarter last year, Parkton Re and Eurus II are the two transactions in question. This takes the total so far this year to 11 (with MultiCat Mexico 2009 coming soon), that makes $1.79b in risk capital. That’s actually down for the three quarters on last year.
However, the fourth quarter is upon us and this year we don’t have a new financial crisis and lack of confidence to deal with. The pipeline looks healthy right now and we should see a return to more normal issuance this quarter. Historically, Guy Carpenter say, the fourth quarter is the second most active of the year. So that bodes well for the earlier predictions that this year would equal or beat last year on risk capital issued.
You can read the comprehensive report in full on Guy Carpenters excellent GCCapitalIdeas.com blog here.