Catastrophe Bond Mid-Quarter Update

By Tom Johansmeyer August 8, 2013

The third quarter tends to be slow for the catastrophe bond issuance market, given that it falls in the middle of hurricane season. This year, however, is a bit different.

According to data from the Artemis Deal Directory, so far this quarter, sponsors have completed seven transactions representing more than $1 billion in new limits. Last year, approximately $800 million came to market across four transactions. Three transactions completed in third-quarter 2013 use the PCS® Catastrophe Loss Index, representing $450 million in capital.

Part of the reason for the high level of third-quarter issuance is that sponsors announced several transactions covering U.S. wind in the second quarter and completed early in the third.

As for the rest of the year, fourth-quarter issuance activity is likely to be on the table in Monte Carlo next month as cedents and reinsurers mark the informal start of the march to the January 1, 2014, reinsurance renewal.

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Tom Johansmeyer

Tom Johansmeyer is Assistant Vice President – PCS Strategy and Development at ISO Claims Analytics, a division of Verisk Insurance Solutions. He leads all client- and market-facing activities at PCS, including new market entry, new solution development, and reinsurance/ILS activity. Currently, Tom is spearheading initiatives in global terror, global energy and marine, and regional property-catastrophe loss aggregation. Previously, Tom held insurance industry roles at Guy Carpenter (where he launched the first corporate blog in the reinsurance sector) and Deloitte. He’s a veteran of the US Army, where he proudly pushed paper in a personnel position in the late 1990s.