ILS issuance hits $2bn in Q1: Willis

A record-breaking issuance volume of $2 billion of non-life insurance-linked securities (ILS) was seen in the first quarter of 2016.

This is according to Willis Capital Markets & Advisory (WCMA), the company that previously confirmed Bermuda as the main domicile for ILS vehicles, representing 67 percent of the market.

The first quarter issuance consisted of nine transactions and 13 tranches, 35 percent higher than last years quarter. All the issuances were sponsored by repeat sponsors.

The quarter ended with $23.2 billion outstanding, also a record for any quarter end.

It was dominated by US transactions although two Japanese bonds, Akibare Re and Aozara Re, also featured.

Bill Dubinsky, head of ILS at WCMA, said: “The headline figure shows that a record level of nonlife ILS was placed during the first-quarter, highlighting the continued appetite for risk from investors and alternative reinsurance capital from ceding companies. Nonetheless, it is too early to say whether the strong Q1 issuance will translate to a record-breaking year.”