January 2016/1

2015 concluded as the second strongest year for ILS issuance since the financial crisis with $7.8bn of volumes, according to Trading Risk records.

Two cat bonds at extreme ends of the risk spectrum opened activity for 2016.

XL Catlin bought what sources described as the biggest ever retro programme in the January renewals as the reinsurance buying for XL Re was brought in line with the previous Catlin purchasing strategy.

Reinsurance cycles may come and go but the seasonal swing from the period of Christmas indulgence to January detox resolution is one that will return every year without fail.

ILS brokers have estimated that cat bond issuance may total $7.0bn for 2016, lowering their sights from the $7.8bn forecast for 2015 last January.

The top 10 ILS funds have grown their assets under management (AuM) by 4 percent from six months earlier and 7 percent from January 2015, according to the latest Trading Risk investor survey.