Download WCMA ILS Quarterly Press Release Q1 2016

Press
Release
ILS market sees record setting start to 2016: $2bn
in first quarter
NEW YORK, 20 April, 2016 — Breaking Q1 2015’s record, the first quarter of 2016
saw new issuance volume of $2.0 billion of non-life capacity, the most of any first
quarter in history, according to the latest ILS market update from Willis Capital Markets
& Advisory, the investment banking business of leading global advisory, broking and
solutions company, Willis Towers Watson (NASDAQ: WLTW).
Issued through nine transactions and 13 tranches, capacity was up 35% compared to
Q1 2015’s $1.5 billion in seven deals. According to the report, all first quarter issuances
were sponsored by repeat sponsors. In addition, Q1 2016 ended with $23.2 billion
outstanding, also a record for any quarter end.
Other than the Japanese bonds Akibare Re and Aozora Re, the first quarter was
dominated by U.S. transactions offering healthy returns to investors. Merna Re 2016-1
was the only U.S. transaction paying a coupon lower than 5.00%.
Bill Dubinsky, Head of Insurance-Linked Securities (ILS) at WCMA, said: “The
headline figure shows that a record level of nonlife ILS was placed during the firstquarter, highlighting the continued appetite for risk from investors and alternative
reinsurance capital from ceding companies. Nonetheless, it is too early to say whether
the strong Q1 issuance will translate to a record-breaking year.”
Elsewhere in the report WCMA highlights how pension funds and consultants have
increased their focus on transparency in cat modeling, and as a results ILS funds and
ceding companies are responding with more modeling information.
Commenting on this trend, Dubinsky said: “Going forward we may start to see
similar pressure for better transparency in portfolio valuation. As with better modeling,
more transparency in valuation will lead to a larger ILS market.”
The report also comments on A.M. Best’s proposed revisions for the calculation of the
U.S. Property & Casualty BCAR. The changes could have a potential impact on
reinsurance and ILS demand from impacted US P&C (re)insurers.
For more details and to access the full WCMA ILS Market Update report, please
click here.
About Willis Capital Markets & Advisory
Willis Capital Markets & Advisory, with offices in New York, London, Hong Kong and
Sydney, provides advice to companies involved in the insurance and reinsurance
industry on a broad array of mergers and acquisition transactions as well as capital
markets products, including acting as underwriter or agent for primary issuances,
operating a secondary insurance-linked securities trading desk and engaging in general
capital markets and strategic advisory work. Willis Capital Markets & Advisory
(“WCMA”) is a trade name used by Willis Securities, Inc., a licensed broker dealer
authorized and regulated by FINRA and a member of SIPC (“WSI”), Willis Capital
Markets & Advisory Limited (Registered number 2908053 and ARBN number 604 264
557), an investment business authorized and regulated by the UK Financial Conduct
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Press
Release
Authority (“WCMAL”) and Willis Capital Markets & Advisory (Hong Kong) Limited, a
corporation licensed and regulated by the Hong Kong Securities and Futures
Commission (“WCMAL (HK)”).
About Willis Towers Watson
Willis Towers Watson (NASDAQ: WLTW) is a leading global advisory, broking and
solutions company that helps clients around the world turn risk into a path for growth.
With roots dating to 1828, Willis Towers Watson has 39,000 employees in more than
120 territories. We design and deliver solutions that manage risk, optimize benefits,
cultivate talent, and expand the power of capital to protect and strengthen institutions
and individuals. Our unique perspective allows us to see the critical intersections
between talent, assets and ideas — the dynamic formula that drives business
performance. Together, we unlock potential. Learn more at willistowerswatson.com.
Contact:
Media
Annie Roberts: +44 20 3124 7080 | [email protected]
Investors
Matthew J. Rohrmann: +1 212 915 8180 | [email protected]
Aida Sukys: +1 703 258 8033 | [email protected]
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