September 6, 2018 09:45
In a report made public this morning, Aon Securities, the investment subsidiary of bank ofAon, believes that the market for catastrophe bonds is now worth more than 30 billion dollars (G$).
A catastrophe bond is a bond with high yield, typically related to an insurance transaction, the issuance of which is intended to raise funds in anticipation of a disaster is uncertain, for example, a hurricane or an earthquake.
A record of issuance
Aon Securities stipulates that$ 3.2 billion of catastrophe bonds were issued in the first quarter of 2018. It is a record, according to the company.
The largest transaction recorded over the last 12 months is that carried out by the World Bank to protect itself in the face of earthquakes in Chile, Colombia, Peru and Mexico. This obligation had a value of$1.4 billion.
In addition, Aon Securities is estimated at 98 G$ the amount of capital alternative available to insurers and reinsurers at this time.