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    Q3 2013 Sees Highest Catastrophe Bond Issuance in 15 years, says Willis Capital Markets & Advisory

    The third quarter of 2013 saw $1.4 billion of non-life catastrophe bond capacity issued through seven bonds, in comparison with $0.5 billion issued through three bonds in the third quarter of 2012, according to Willis Capital Markets & Advisory (WCMA), part of Willis Group Holdings (NYSE: WSH), the global risk advisor, insurance and reinsurance broker.

    Third quarter issuance in 2013 was approximately three times higher than the five year average and was the highest on record since 1998, according to WCMA in its latest ‘Insurance Linked Securities’ (ILS) report.

    Bill Dubinsky, Head of Insurance-Linked Securities (ILS) at WCMA, said: “As we move into the year’s final quarter, a fourth quarter issuance level similar to that of recent years will see the market record its largest ever issuance year, surpassing the 2007 record. Outstanding capacity has now grown in each of the past five years, with the currently outstanding capacity of $17.3 billion, representing an all-time high.”

    Elsewhere in the report, WCMA explores how some traditional reinsurers are responding to the influx of capital into the reinsurance market, by managing increasing amounts of investor capital in funds and sidecars, as well as sponsoring deals themselves.

    Dubinsky added: “Some investors are encouraging more catastrophe bond issuance so that they can continue to fulfil mandates for liquid investments. Other investors are chasing the illiquidity in collateralised reinsurance as a mechanism to protect themselves from the ruthless price pressure in a well run syndication process.”

    The report also contains an interview with Dr Andreas Müller, Head of Distribution and ILS investments at Munich Re’s Risk Trading Unit.

    About Willis
    Willis Group Holdings plc is a leading global risk advisor, insurance and reinsurance broker. With roots dating to 1828, Willis operates today on every continent with more than 17,000 employees in over 400 offices. Willis offers its clients superior expertise, teamwork, innovation and market-leading products and professional services in risk management and transfer. Our experts rank among the world’s leading authorities on analytics, modelling and mitigation strategies at the intersection of global commerce and extreme events. Find more information at our website, www.willis.com, our leadership journal, Resilience, or our up-to-the-minute blog on breaking news, WillisWire. Across geographies, industries and specialisms, Willis provides its local and multinational clients with resilience for a risky world.

    About Willis Capital Markets & Advisory
    Willis Capital Markets & Advisory is a trade name used by Willis Securities, Inc., a member of the Willis Group and a registered broker-dealer with the U.S. Securities and Exchange Commission and member of FINRA and SIPC.

    This communication should not be regarded as an offer to sell or as a solicitation of an offer to buy any security. The information contained herein is as of this date only, is subject to change and does not contain all information necessary to adequately evaluate an investment in any financial instrument. Information contained in this communication may not reflect information known to other employees in any other business areas of Willis Group and its affiliates. No representation or warranty, express or implied, is made as to the accuracy or completeness of such information and nothing contained herein is, or shall be relied upon as, a representation, whether as to the past, the present or the future.


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