Q3 2015 Cat Bond & ILS Market Report: Market making steady progress

Our latest quarterly report looking at issuance in the catastrophe bond and insurance-linked securities (ILS) market has now been published. The report titled ‘Q3 2015 Catastrophe Bond & ILS Market Report – A market making steady progress‘ reflects a quarter of strong and diverse issuance, as the market tries to keep up with investor demand.

This report reviews the catastrophe bond and insurance or reinsurance-linked securities (ILS) market issuance at the end of Q3 2015, looking at new risk capital issued during the third-quarter and the composition of transactions completed.

The third-quarter is typically a quieter period for catastrophe bond and ILS issuance, coming on the heels of the key June/July renewals when many transactions are renewed and issued.

While this remained the trend in 2015, with Q3 issuance lower than the previous two quarters, cat bond and ILS market issuance during the quarter totalled $1.093 billion, the second highest Q3 volume ever recorded by Artemis.

The $1.093 billion of risk capital issued during the third-quarter came from nine transactions, five of which would be considered ‘cat bond lite’ deals, continuing the trend for smaller deals and ILS fund to ILS fund issuances.

Q3 2015 is only the second time since the catastrophe bond market’s inception that issuance has surpassed $1 billion in Q3, second only to 2013 which saw $1.705 billion of total risk capital issued during the period.

The cat bonds and ILS issued in the quarter provided investors with a good deal of diversification, albeit with a focus on the global earthquake peril. For full details, download the report.

This Q3 2015 issuance takes 2015’s total catastrophe bond and ILS issuance recorded by Artemis to $6.316 billion, year-to-date.

With just $764 million of maturities scheduled through the fourth-quarter there is every chance that the outstanding catastrophe bond & ILS market will achieve outright growth once again in 2015. Currently, at the end of Q3, the outstanding market has reached $25.026 billion in size and has grown since the end of Q3 2014.

For full details of the quarter, including a breakdown of the issuance by factors such as perils, triggers, expected loss, pricing, and analysis of the issuance trends by month and year, download your copy of Artemis’ Q3 Cat Bond & ILS Market Report here.

For copies of reports from previous quarters, visit our archive page to download them all.

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.