Sept 5 (Reuters) – Sales of catastrophe bonds, which let reinsurers and insurers transfer risk to capital markets, have reached a four-year high and are expected to hit $6 billion by the end of the year, Aon Benfield said on Wednesday.
Cat bond issuance totaled nearly $6 billion in 2008 before falling sharply as the financial crisis struck, but the market for cat bonds has since improved as investors' memories of the crisis faded, soothed by double-digit returns for many ILS.
New issuance and outstanding volumes of cat bonds have seen a growth of $2 billion in the first quarter of 2012, compared with the same period in 2011, Aon's investment banking division, Aon Benfield Securities, said in a report.
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