A.M.BestTV: Catastrophe Bonds 'Lite' Off to a Fast Start in 2015

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FOR IMMEDIATE RELEASE

OLDWICK - JANUARY 23, 2015 01:56 PM (EST)
This ^A.M.BestTV episode examines how a surge in smaller catastrophe bonds is bringing new capital to insurance coverages formerly unreached by securitization. In the meantime, issuance of all catastrophe bonds appears headed for new heights.

2014 was another record year for catastrophe (cat) bonds, as their total rose to 8.8 billion, up 15% over 2013. Helping to contribute to this increase was the cat bonds "lite" structure.

Managing Senior Financial Analyst at A.M. Best, Asha Attoh-Okine, believes cat bonds "lite" are a great investment opportunity for the smaller insurer. "Cat bonds "lite" are smaller in size in terms of the dollar amount but very cost effective and the needed documentation is very streamline," said Attoh-Okine. "So compared to the traditional cat bonds, where the dollar amount has to be very large, these cat bonds "lite" provide an avenue for the smaller insurer to take part in the capital market."

Also appearing in this episode:

• Tom Johansmeyer, assistant vice president, reinsurance services, ISO/Verisk Insurance Solutions

Click here to view the entire video program: http://www.ambest.com/v.asp?v=catbonds115.

For further information about insurance linked-securities and the reinsurance market, please visit http://www.ambest.com/reinsurance.

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^A.M.BestTV covers exclusive A.M. Best information and reports, targeted topics and key developments in the (re)insurance industry every Monday, Wednesday and Friday. Sign up for alerts of episodes at http://www.ambest.com/multimedia/ambtvsignup.html. View ^A.M.BestTV episodes at http://www.ambest.tv.

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