First-half tallies of 2013 catastrophe bond issues have been coming in from reinsurers and brokers in recent months, with all suggesting that 2013 could be a record year of issuance.

Executive Summary

Catastrophe bond issuance for 2013 is poised to break the previous record set in 2007, and carriers are benefitting from a surge in demand as investors start to accept aggregate deals and indemnity triggers, even for commercial business.

Swiss Re, Munich Re and Willis Capital Markets & Advisory are among the counters who put the 2013 first-half total around $3.8-$3.9 billion.

According to a chart in Willis’s report, non-life issuance reached its peak in 2007 with a $7.2 billion total. For the year, “our current best estimate is $6-$7 billion in non-life issuance….If sponsors accelerate deal execution into 2013 that would otherwise have occurred in 2014, exceeding $7 billion seems quite possible,” the Willis report says.

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