Cayman ‘cat’ bond listings hit USD8.5 billion

Published in Hedgeweek February 29, 2012
The Cayman Islands Stock Exchange (CSX) has reached 100 catastrophe bond programme and series listings, with a total face value of approximately USD8.5 billion.

The CSX listed its first cat bond Ajax Re Ltd in 2007. The specialist listing rules of the Cayman Islands Stock Exchange are specifically tailored to support the approach of the Cayman Islands Financial Services Industry in its highly successful drive to attract Insurance Linked and other captive reinsurance business. The insurance industry in the Cayman Islands has surged recently with a total of 739 captives now collecting an all time high of USD11.76 billion in annual premiums with total assets growing to USD68.5 billion.

CSX Chairman Anthony Travers says: “The lead position taken by the Cayman Islands in relation to the establishment and listing of these highly sophisticated securities should serve as example of how to generate positive economic results through innovation,appropriate regulation and an in depth understanding of the international financial marketplace.”