Skip to main content
The Actuary: The magazine of the Institute and Faculty of Actuaries - return to the homepage Logo of The Actuary website
  • Search
  • Visit The Actuary Magazine on Facebook
  • Visit The Actuary Magazine on LinkedIn
  • Visit @TheActuaryMag on Twitter
Visit the website of the Institute and Faculty of Actuaries Logo of the Institute and Faculty of Actuaries

Main navigation

  • News
  • Features
    • General Features
    • Interviews
    • Students
    • Opinion
  • Topics
  • Knowledge
    • Business Skills
    • Careers
    • Events
    • Predictions by The Actuary
    • Whitepapers
  • Jobs
  • IFoA
    • CEO Comment
    • IFoA News
    • People & Social News
    • President Comment
  • Archive
Quick links:
  • Home
  • The Actuary Issues
  • July 2014
07

Catastrophe bond issues hit record high in first half of 2014

Open-access content Thursday 10th July 2014

Insurers issued a record $4.5bn of catastrophe bonds in the second quarter of 2014, according to a report by Aon Benfield Securities.

Its Insurance-linked securities second quarter 2014 update revealed that 12 catastrophe bond transactions closed during 2Q14, representing $4.5bn of issuance, 'the most of any quarter in the entire history of the ILS market'.

Catastrophe bonds, a form of financial security and usually insurance-linked, are issued by insurers to raise money and spread risk in order to protect their balance sheets in case of large-scale payouts, such as those caused by natural disasters.

In the event of the catastrophe occurring, the bondholders lose their money and it is used to pay the insured.

The first quarter of the year saw $1.4bn of catastrophe bond issuance. Combining this with second quarter figures, the ILS market saw a 'record first half 2014 issuance of $5.9bn - exceeding the prior year period by almost 50%'. 

Paul Schultz, chief executive officer of Aon Benfield Securities, said: 'After a strong 2013, the ILS market has managed to increase its momentum through the first and second quarter of this year, with new records being set for issuance volumes and more catastrophe bonds on-risk than at any other time in the market's history.

'We believe that there are still further opportunities for expansion, especially if the sector continues to innovate in terms of its product offerings.'

Aon Benfield Securities expects 2014 to be a record year for the ILS market, if strong growth continues in this sector. 

This article appeared in our July 2014 issue of The Actuary.
Click here to view this issue
Filed in:
07
Topics:
Reinsurance

You might also like...

Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

Latest Jobs

Capital Analyst- no capital experience required

London (Central)
£Competitive
Reference
121218

Pricing Analyst looking to broaden experience?

London (Central)
Up to £55,000
Reference
121217

Head of Pricing - International

BMD excellent
Reference
121202
See all jobs »
 
 

Today's top reads

 
 

Sign up to our newsletter

News, jobs and updates

Sign up

Subscribe to The Actuary

Receive the print edition straight to your door

Subscribe
Spread-iPad-slantB-june.png

Topics

  • Data Science
  • Investment
  • Risk & ERM
  • Pensions
  • Environment
  • Soft skills
  • General Insurance
  • Regulation Standards
  • Health care
  • Technology
  • Reinsurance
  • Global
  • Life insurance
​
FOLLOW US
The Actuary on LinkedIn
@TheActuaryMag on Twitter
Facebook: The Actuary Magazine
CONTACT US
The Actuary
Tel: (+44) 020 7880 6200
​

IFoA

About IFoA
Become an actuary
IFoA Events
About membership

Information

Privacy Policy
Terms & Conditions
Cookie Policy
Think Green

Get in touch

Contact us
Advertise with us
Subscribe to The Actuary Magazine
Contribute

The Actuary Jobs

Actuarial job search
Pensions jobs
General insurance jobs
Solvency II jobs

© 2021 The Actuary. The Actuary is published on behalf of the Institute and Faculty of Actuaries by Redactive Publishing Limited, Level 5, 78 Chamber Street, London, E1 8BL. Tel: 020 7880 6200