During the first four months of 2012, new catastrophe-bond issuance hit a record high amid signs that the bond market may be poised for continued expansion and diversification. Market participants have attributed this growth to historically low interest rates, volatile markets and low stock valuations of reinsurance companies. Investors are considering catastrophe bonds, and other forms of ILS and alternative risk transfers, as an attractive alternative investment asset, and reinsurers and primary insurers view the expanding market as providing effective risk transfer and as an opportunity to bring underwriting expertise to the capital markets.
Mayer Brown’s insurance finance team has advised on more than 50 catastrophe bonds over the last seven years (including more than $2 billion of catastrophe risk capital raised in the 144A markets in the first four months of 2012) as well as numerous sidecars and innovative alternative risk transfer transactions in both the life and non-life arenas. Please join our partners Stephen Rooney and Richard Spitzer on June 28 for a discussion of the market including:
- Recent developments in catastrophe bond structures
- Impact of the eurozone crisis
- State residual funds
- Recent developments in sidecar structures
Mayer Brown's Global Financial Markets Initiative helps clients deal with the legal and business challenges resulting from the ongoing turbulence in worldwide financial markets. By mobilizing the firm's global resources from multiple practices and offices, the Initiative provides clients with knowledgeable and timely counsel on a broad spectrum of their legal needs.