Growth in the gaps: ILS Market Update Q4 2018

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

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

Source: Willis Re ILS Market Update Q4 2018

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