More than $2 billion in catastrophe-bond maturities are not expected to impact the overall size of the market as new money funneling in should keep the industry growing, according to a Guy Carpenter report.

The report says more than $711 million in risk capital matured in 2012's first quarter. But the quarter also saw a record $1.34 billion in new bonds issued.

Guy Carpenter's report notes that four programs matured in the quarter:

  • Groupama sponsored a $136 million bond covering French windstorms.
  • SCOR sponsored three tranches covering U.S. hurricane and earthquake totaling $200 million.
  • Chubb sponsored a $150 million bond covering Florida hurricane risks.
  • Liberty Mutual sponsored a $225 million tranche covering U.S. hurricane and earthquake.     

For all of 2012, a total of $2.51 billion is scheduled to mature. Of that amount, $1.44 billion will mature before June 30. But risk capital outstanding increased by more than 5 percent in the first quarter to $12.77 billion, says Guy Carpenter—and this trend is expected to continue.

Recommended For You

Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader

Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
  • Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
NOT FOR REPRINT

© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more inforrmation visit Asset & Logo Licensing.