Investment - Articles - Q2 catastrophe bonds hit $3bn as life bonds hit 8 year high

 The report, Insurance-Linked Securities Second Quarter 2015 Update, reveals that catastrophe bond issuance for the period reached USD2.96bn.

 When added to the record first quarter 2015 catastrophe bond issuance total of USD1.69bn, total catastrophe bond issuance for the first half of the year stood at USD4.66bn (1H 2014: USD5.90bn).

 Second quarter bond issuance comprised nine property catastrophe bonds and one life transaction. As at June 30, 2015, catastrophe bonds on-risk totaled USD23.47bn – a six percent increase over the end of Q1 2015, during which USD3.87bn of bonds matured – but slightly lower than the record USD24.29bn seen at the end of Q4 2014.

 Paul Schultz, Chief Executive Officer of Aon Securities, said: “Whilst not quite matching the record-breaking second quarter of 2014, results during second quarter 2015 were highly encouraging and maintained much of the momentum created during the first quarter of the year. It is worth noting that the second quarter saw the issuance of a large extreme mortality bond that brought total life and health catastrophe bond issuance for 2015 to the highest level since 2007.”

 The second quarter study reveals that in the three months to June 30, 2015, the Aon All Bond, U.S. Hurricane Bond, and U.S. Earthquake Bond indices were all positive, with gains of 0.53 percent, 0.33 percent, and 0.37 percent respectively. The Aon BB-rated Bond Index posted a negative result of -0.04 percent.

 The Aon ILS Indices, which are calculated by Bloomberg using month-end price data provided by Aon Securities, outperformed the S&P 500 index during the period under review.

 To view the full Insurance-Linked Securities Second Quarter 2015 Update, please follow the link below: