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Record Cat Bond Issuance Drives Significant Uplift In Use Of PCS Trigger

Steve Evans profile picture
Steve Evans

After a record-breaking first and second-quarter for catastrophe bond and insurance-linked securities (ILS) issuance, use of Property Claim Services (PCS) data in H1 transactions increased significantly to $4.5 billion when compared with the previous year, according to the PCS H1 2017 Catastrophe Bond Report.

As shown by the Artemis Deal Directory and Artemis Q2 2017 Catastrophe Bond & ILS Market Report, a record $7 billion of issuance in the second-quarter combined with the record-breaking Q1 to result in H1 2017 issuance reaching $9.761 billion, which is the most ever seen in a single year.

PCS' H1 2017 Catastrophe Bond report also highlights the record-breaking levels of issuance seen in Q1 and Q2 2017, although its numbers are slightly below Artemis' owing to the exclusion of private deals, or deals focused on lines outside of property.

Speaking with Artemis, Tom Johansmeyer, Assistant Vice President (AVP), PCS Strategy and Development, said; "The second quarter - and even the entire year so far - has given the ILS market much to celebrate. A wide variety of transactions came to market, indicating the depth and breadth available to cedants and markets in this space."

Of the $8.8 billion of H1 2017 issuance recorded by PCS, of which $6.5 billion came to market in the second-quarter from 21 transactions, $4.5 billion, or 51% utilised a PCS trigger. The $4.5 billion of issuance that used a PCS trigger during H1 2017 came from 12 transactions, with PCS recording 29 total transactions for the first six months of the year.

The $4.5 billion of issuance in H1 2017 is compared to $1.7 billion of H1 2016 issuance that utilised a PCS trigger, which represents an increase of over 170%. In terms of the number of transactions, the 12 that utilised a PCS trigger in H1 2017 is up from the eight recorded

This article was written by

Steve Evans profile picture
Owner of www.Artemis.bm the leading website on catastrophe bonds, insurance linked securities, reinsurance linked investments, reinsurance capital trends & risk transfer.Tracking the catastrophe bond market and the development of insurance-linked securities and collateralized reinsurance since 1996, as well as global insurance and reinsurance market trends.Built insurance technology (insurtech) solutions since the mid-90's, including trading platforms, derivatives platforms, claims prediction engines, intelligent agents.As well as Artemis, I am also the owner of www.reinsurancene.ws, a free to access reinsurance market publication with the largest readership of its kind.

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