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.
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