A new article from Man Group has highlighted how the catastrophe bond market continues to offer effective pricing competition, multi-year cover against a range of perils, and an additional source of capacity. All of which leads the firm to call out that it believes the market is well placed for further growth, provided pricing remains attractive to investors and sponsors.
Authored by Andre Rzym, Partner and Portfolio Manager, Systematic, and Tarek Abou Zeid, Partner and Head of Client Portfolio Management, Systematic, the article explains that catastrophe bond returns have been positive every year since 2002, with double digit returns recorded in the last three years.
The primary exception to this pattern occurred in 2022, when the Swiss Re Index declined by 2.15%. Major hurricane Ian was the main contributor towards that decline, with its impact amplified by the storm’s landfall in a densely populated area, while losses over the year were compounded by secondary perils, including floods and hailstorms.
FULL ORIGINAL PUBLICATION HERE