Aon's insurance-linked securities report shows that 35 catastrophe bonds were issued by 31 sponsors in 2017, with total global catastrophe bond issuance reaching a record $10.7 billion.

        After $8.6 billion of catastrophe bonds were issued in the first half of 2017, a series of events affected catastrophe bond pricing. Issuance shrank to $800 million in the third quarter, before rising again to $1.3 billion in the fourth quarter.

        By the end of 2017, outstanding catastrophe bonds worldwide totaled $25.7 billion, and non-traditional capital financing reached $89-90 billion.

        Paul Schultz, CEO of Aon Securities, said the insurance-linked securities market performed strongly in 2017, with the non-traditional capital market setting several new records. He expects that, with the support of market investors and the continuous expansion of the boundaries of insurance-linked securities products, this market will become an important risk transfer tool for traditional (re)insurance companies.

Source: Captive Insurance Times