Catastrophe-Bond Placements Reach Q1 Record

Catastrophe-bond activity reached record levels in 2012's first quarter, exceeding last year's placements by more than $300 million, says Guy Carpenter. The reinsurance broker issued a report saying that total global catastrophe-bond placements reached $1.34 billion issued through eight transactions.

 According to the report:

• The total exceeds last year's record of $1.02 billion for the same period.
• Total risk-capital outstanding increased by more than 5 percent from $12.14 billion to $12.77 billion.
• Q1 catastrophe bond redemptions came to about $711 million.
• Looking ahead, 2012 could be a record year, the report says, which would mean bond issuance in excess of $7 billion