Willis ILS Report: Strong Start to 2012 with Record First Quarter Issuance
NEW YORK, May 1, 2012 – There was a record issuance in the catastrophe bond market in
the first quarter of 2012, with eight new non-life issues providing over US$1.3 billion of
risk capital, according to the latest Insurance-Linked Securities (ILS) Market Update from Willis Capital Markets &
Advisory (WCMA), part of global insurance broker, Willis Group Holdings (NYSE: WSH).
The quarterly report titled, “Strong Start to 2012 Sees Record First Quarter Issuance”, noted that
the market had $13.3 billion of outstanding non-life capacity at the end of the first
quarter, two-thirds of which is exposed to U.S. hurricane risk of some form.
This quarter’s report features an interview with Frank Majors of Nephila Capital. Majors comments on the
development of investor recognition of the ILS market and argues that assets under management will
grow significantly as the market evolves and that capital should flow to the peak risks where
it is most needed.
Bill Dubinsky, Head of ILS at WCMA, said, “The market’s strong momentum from late 2011 has continued
into the first quarter of 2012. Although spread levels have widened somewhat, we believe
the medium term outlook for the market remains encouraging. Growth in insured exposures should continue
to drive capital markets’ involvement in the catastrophe risk sector.”
Click here to access the full ILS Market Update.
Willis Capital Markets & Advisory, with offices in New York and London, provides advice to insurance and
reinsurance companies on a broad array of mergers and acquisition transactions as well as capital
markets products. Nothing in this communication constitutes any legal or financial advice or an offer or
solicitation to sell or purchase any securities.
Willis Group Holdings plc is a leading global insurance broker. Through its subsidiaries, Willis develops and delivers
professional insurance, reinsurance, risk management, financial and human resource consulting and actuarial services to corporations,
public entities and institutions around the world. Willis has more than 400 offices in
nearly 120 countries, with a global team of approximately 17,000 employees serving clients in virtually every
part of the world. Additional information on Willis may be found at www.willis.com.
# # #