Catastrophe bond limit secured in the 2015 first quarter came in at $1.7 billion, the most of any Q1 yet recorded, Aon Benfield said in its latest status report on insurance-linked securities.
Aon Benfield said that repeat sponsors seeking coverage in the competitive rate environment drove the number, and it found other results that indicate a cat bond highpoint.
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Aon Benfield noted a number of Q1 cat bond highlights in its report.
SCOR, for example, came to market with a new offering from Atlas IX Capital Ltd., securing $150 million in industry index U.S. hurricane and North America earthquake coverage. This follows its U.S. mortality issuance under the same program in 2013, though Canadian earthquake risk is a new addition for the sponsor.
Chubb got $250 million of indemnity Northeast multi-peril coverage for personal and commercial lines from East Lane VI Ltd., its 9th catastrophe bond. This is the first bond for Chubb that offers coverage for un-modeled perils of volcanic eruption and meteorite impact.
State Farm was able to raise $300 million in New Madrid earthquake indemnity coverage for the third year in a row. It now has a combined $900 million of total limit outstanding. With this in mind, State Farm placed its entire New Madrid $1 billion xs $450 million layer.
Compared to the $1.7 billion cat bond issuance for Q1, the number came in at $1.1 billion in the 2011 first quarter, nearly $1.5 billion in the 2012 first quarter, $670 million in the 2013 first quarter and $1.4 billion over the same period in 2014, Aon Benfield noted.
Source: Aon Benfield