Cat bond issuance declines in Q2 but still robust

New issuance of P&C catastrophe bonds totalled $4.86bn across 23 transactions in the second quarter, down from $5.61 billion in the year-earlier period but still the third-highest second-quarter issuance ever, according to Aon Securities’ latest update.

As first reported in our sister publication Business Insurance, the second-quarter record is $6.38bn issued in 2017.

Approximately one-third of the new issuance protects against perils in Florida or the southeast US, Aon said. It described this money as “a valuable alternative source for capacity for cedents, especially during difficult 6/1 renewals”.

The quarter’s largest deal was Travelers’ $575m Long Point Re IV Ltd 2022-1 A, covering US tropical storm, earthquake, severe thunderstorm and winter storm across northeastern US states only for a four-year term on an indemnity trigger and per-occurrence basis.

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