NEW YORK, Nov. 6, 2013 (GLOBE NEWSWIRE) -- The third quarter of 2013 saw $1.4 billion of non-life catastrophe bond capacity issued through seven bonds, in comparison with $0.5 billion issued through three bonds in the third quarter of 2012, according to Willis Capital Markets & Advisory (WCMA), part of Willis Group Holdings (NYSE:WSH), the global risk advisor, insurance and reinsurance broker.
Third quarter 2013 catastrophe bond issuance was approximately three times higher than the five year average and was the highest on record since 1998, according to WCMA in its latest 'Insurance Linked Securities' (ILS) report.
Bill Dubinsky, Head of ILS at WCMA, said: "If fourth quarter issuance remains at a similar level to that of recent years it will be a record year for ILS issuance, surpassing the 2007 record. Outstanding capacity has now grown in each of the past five years, with the currently outstanding capacity of $17.3 billion representing an all-time high."
Elsewhere in the report, WCMA explores how some traditional reinsurers are responding to the influx of capital into the reinsurance market, by managing increasing amounts of investor capital in funds and sidecars, as well as sponsoring deals themselves.
Dubinsky added: "Some investors are encouraging more catastrophe bond issuance so that they can continue to fulfil mandates for liquid investments. Other investors are chasing the illiquidity in collateralised reinsurance as a mechanism to protect themselves from the ruthless price pressure in a well run syndication process."
The report also contains an interview with Dr Andreas Müller, Head of Origination, Distribution and ILS investments at Munich Re's Risk Trading Unit.
To download the report, please click here.
Willis Group Holdings plc is a leading global risk advisor, insurance and reinsurance broker. With roots dating to 1828, Willis operates today on every continent with more than 17,000 employees in over 400 offices. Willis offers its clients superior expertise, teamwork, innovation and market-leading products and professional services in risk management and transfer. Our experts rank among the world's leading authorities on analytics, modelling and mitigation strategies at the intersection of global commerce and extreme events. Find more information at our website, www.willis.com, our leadership journal, Resilience, or our up-to-the-minute blog on breaking news, WillisWire. Across geographies, industries and specialisms, Willis provides its local and multinational clients with resilience for a risky world.
About Willis Capital Markets & Advisory
Willis Capital Markets & Advisory is a trade name used by Willis Securities, Inc., a member of the Willis Group and a registered broker-dealer with the U.S. Securities and Exchange Commission and member of FINRA and SIPC.
This communication should not be regarded as an offer to sell or as a solicitation of an offer to buy, or, except with respect to an accompanying confirmation of transaction sheet, as a confirmation of terms of the purchase or sale of, any security. The information contained herein is as of this date only, is subject to change and does not contain all information necessary to adequately evaluate an investment in any financial instrument. Information contained in this communication may not reflect information known to other employees in any other business areas of Willis Group and its affiliates.
All the securities referred to herein having been sold, this announcement is a matter of record only. This communication does not constitute an offer to sell or the solicitation of an offer to buy the securities mentioned herein in any jurisdiction in which such an offer or solicitation is illegal. The securities mentioned herein have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the "Securities Act"), and may not be offered or sold in the United States except pursuant to an exemption from the registration requirements of the Securities Act.