LONDON (Reuters) – Catastrophe bond sales doubled in the first six months of 2012, falling just short of the record first-half issuance of 2007 thanks to growing demand from capital market investors, reinsurer Swiss Re said on Tuesday.
Insurers issued $3.6 billion worth of the instruments in the six months to June, double the $1.8 billion sold in the same period last year, the world's No.2 reinsurer said in a report.
Cat bonds, which offer investors an income in return for agreeing to pay some of an insurer's claims if a natural disaster strikes, are increasingly popular because they carry higher yields than regular bonds and are insulated from economic shocks.
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