b'TABLE OF CONTENTSILS AND CONVERGENCE MARKETSSponsoring companies in 2021 included primaryPalomar Specialty Insurance Company and Oak insurer sponsors (such as Allstate, USAA, SecurityTree Assurance Ltd., a workers compensation First Insurance Company and Assicurazionicaptive owned by the Kaiser Permanente group, Generali S.p.A.) and diverse new marketsponsored their first transactions since 2017 and participants (such as Prologis, Inc., Farmers2018, respectively.Insurance Group, the Government of Jamaica andOver the course of 2021, mortgage insurance-the Danish Red Cross). State-sponsored insurancelinked notes, totaling approximately $6.3 billion, entities were again significant participants in thewere issued by a number of sponsors, including market in 2021, including offerings sponsored byArch Capital Group Ltd, Essent Guaranty, FEMA, Louisiana Citizens, Florida Citizens, theGenworth Mortgage Insurance, National Mortgage California Earthquake Authority and TexasInsurance Corporation, MGIC Investment Windstorm Insurance Association. Corporation and Radian Guaranty. Issuance In 2021, attractive pricing from the capital marketsamounts in 2021 were significantly in excess of the saw a quick return to market of recent first-timeprevious market record, which was $4.55 billion in sponsors, as well as a return for sponsors who had2019. Additionally, the 14 mortgage transactions been absent from the market for some years. Inissued in 2021 was also a new record for the the former category, Alphabet Inc., the parentmarket, increasing the total mortgage ILS issuance company of Google, followed up its two issuancesto more than $19 billion and accounting for in December 2020, with an additional issuance inapproximately 31% of 2021 issuances.2021, all covering its exposure to risk of loss from2021 saw a number of innovative transactions and California earthquakes. Similarly, Bayview Assettransaction features. In March 2021, the Danish Red Management, LLC, a new market entrant in lateCross brought the first pure volcanic risk 2019/early 2020, followed up its innovative Sierracatastrophe bond to market. The volcano Ltd. transaction, benefiting an investment fundcatastrophe bond utilizes a parametric trigger holding mortgage-related securities, with a secondbased on plume height and covers ten active transaction in early 2021. The Los Angelesvolcanoes in various countries around the world. Department of Water & Power also returned toWhen triggered, the bond will provide a source of market in 2021 after an inaugural transactionthefinancing to assist the Danish Red Crosss relief first to benefit a municipal entityin 2020, withefforts. The bond was also notable for settling via a both transactions covering its exposure to lossesblockchain-based ILS platform. While relatively due to California wildfire. In the latter category, insmall in size, the $3 million issuance shows the 2021 Assicurazioni Generali S.p.A. (Generali)flexibility of the ILS model and its applicability to sponsored its first catastrophe bond since 2017,unique financing challenges.and fourth in total. China Re, a Chinese state-owned reinsurer, returned to market after aIn June 2021, Generali sponsored a catastrophe six-year absence with the Greater Bay Re Limitedbond with specific green features included in the transaction (discussed further below). Similarly,structure. Generally regarded as the first green cat MAYER BROWN |53'