Growth in the gaps: ILS Market Update Q4 2018

January 29, 2019

Growth of the insurance-linked securities (ILS) market continued in 2018, to reach $93 billion of outstanding non-life capital, despite a slow-down during the final quarter of the year. In the face of multiple smaller catastrophic events in 2018 and a meaningful series of catastrophes in 2017, non-life catastrophe (cat) bond issuance remained strong. About $9.2 billion of new capital was delivered, marking the second most active calendar year ever.

Of $535 million in bonds issued during Q4, $125 million provides protection from California wildfire liability, $200 million grants peak multiperil protection, and $210 million covers U.S. earthquake (workers’ compensation).

The report features these topics:

  • Willis Towers Watson year-end alternative capital outstanding estimate
  • Q4 2018 cat bond issuance
  • Industry loss development estimates for select historical cat events at a glance

If you have any questions or comments, please reach out to any of the contacts listed in the newsletter.

Year-end non-life ILS capital outstanding ($bn)

graph showing year-end non-life ILS captial outstanding

Source: Willis Re ILS Market Update Q4 2018

View the full report using the “Download” button, above or below.