Insurance-linked securities market experiencing promising growth

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Aon Benfield Securities releases report examining insurance-linked securities market

Aon Benfield Securities, the investment banking arm of Aon Benfield, has released a new report concerning the insurance-linked securities market. The report examines a number of trends that have emerged in the insurance-linked securities market in the second quarter of 2012. Some of the trends examined in the report have carried over from the first quarter of 2012, with numerous factors adding to the momentum of these trends and increasing their influence on the market.

Report shows $2.1 billion in catastrophe bond issuance in second quarter

According to the report, titled Insurance-Linked Securities Second Quarter Update 2012, catastrophe bond issuance reached $2.1 billion in the period examined. This is largely due to the continuing trend of investors pumping capital into the sector. This is a trend that was witnessed in the insurance-linked securities market during the first quarter of 2012. The report also notes that there have been a total of seven large transactions during the second quarter of the years, some of which were from new sponsors.

Trends could continue to have an impact on the market

Aon Benfield Securities believes that the remainder of 2012 could hold serious promise for the insurance-linked securities market. The trends examined in the report do not show any signs of fading away, thus are expected to continue having some influence on the market. The report notes that the total issuance of catastrophe bonds in the first half of 2012 is approaching record levels, accounting for $3.6 billion. The all-time high in this sector currently stands at $3.8 billion, which was seen in 2007.

Insurance-linked securities market may continue seeing positive impact from emerging trends

The insurance-linked securities market may be in a state of flux, but Aon Benfield Securities suggests that the changes occurring in the market have been positive. Whether these trends will remain to have an effect on the market is unknown, but the report suggests that it is likely that insurance-linked securities market will continue to experience promising growth.

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