Catastrophe Bonds: Mid-Quarter Update

By Gary Kerney  |  November 15, 2012

The fourth quarter tends to be among the busiest of the year in the catastrophe bond issuance market, and 2012 has not disappointed. So far, sponsors have completed four transactions, three of them with U.S. natural catastrophe exposure. In each of them — Mythen Re Ltd., Atlas Reinsurance VII Limited, and Queen Street VII Re Ltd. — data from Property Claim Services plays a role in the trigger, either through the use of the PCS Catastrophe Loss Index or through catastrophe designation.

Of course, more activity is likely to come in the next month and a half, especially since December is usually one of the busiest issuance months of the year. Already, though, 2012 catastrophe bond issuance activity has surpassed the full-year 2011 result, according to a recent Reuters report, and it's closing in on the levels attained in 2010 and 2006.

Gary Kerney

Gary Kerney, one of the most prolific contributors to this blog, retired from Verisk in 2013. Mr. Kerney served as assistant vice president, Property Claim Services (PCS). Since joining PCS in 1981, he worked on catastrophe identification, loss estimating, and catastrophe response and mitigation.