New issuance of property/casualty bonds totaled $4.86 billion across 23 transactions in the second quarter, up from $5.61 billion a year earlier but still the third-highest second-quarter issuance on record, according to Aon Securities’ quarterly update released on Thursday. .
The second quarter record is $6.38 billion issued in 2017.
About a third of the new issuance hedges against hazards in Florida or the southeastern United States, Aon said, “a valuable alternative source of capacity for cedants, especially during difficult 6/1 renewals.”
Among the larger transactions, Everest Re Group sponsored Kilimanjaro III Re Ltd returned. Bermuda vehicles to market with a $250 million Class A issue, which sought coverage on an annual aggregate index basis, to cover losses from U.S. storm and earthquake events over a three-year period. The areas covered are all US states, the District of Columbia, Puerto Rico, the US Virgin Islands and all provinces and territories of Canada.
The biggest deal of the quarter was Travelers Cos. Inc.̵7;s Long Point Re IV Ltd. 575 million dollars. 2022-1 A US tropical storm, earthquake, severe thunderstorm, and winter storm over the northeastern US states for a four-year period only with one replacement trigger and per occurrence.