SNL Report: Cat Bond Market Continues to Progress

By Thomas Mason | May 3, 2013

A report from SNL Financial cites the recent activity in the insurance linked securities (ILS), or “Cat Bond” market is continuing to be an attractive alternative for insurers.

SNL’s report notes that “even after an active 2012, the appetite for special purpose insurance vehicles does not appear to be sated, judging by the slew of new formations thus far in 2013. Bermuda registered eight special purpose insurers in the first quarter of 2013, and the Cayman Islands licensed one class C entity, based on data from the monetary authorities of both domiciles.

“All told, more than $1 billion flowed to special purpose vehicles in the first quarter, which is a conservative estimate; data on the amount of capital backing Accordion Reinsurance II Ltd., Mona Lisa Re Ltd. and Collateralized Re (L) Ltd. was not immediately available.

“In terms of the number of vehicles registered, the annualized first-quarter number would exceed the 2011 level, when 29 entities were registered between the two islands, but it would fall short of 2012, when more than 40 were registered.”

Source: SNL Financial

Was this article valuable?

Here are more articles you may enjoy.