Insurance-linked securities issuance breaches $2bn in second quarter, according to Aon Benfield ILS study

CHICAGO, July 25, 2012 /PRNewswire/ -- Aon Benfield Securities, the investment banking division of global reinsurance intermediary and capital advisor Aon Benfield, today launches its latest report on the insurance-linked securities (ILS) market, which reviews the key trends witnessed during the second quarter of 2012.

The Insurance-Linked Securities Second Quarter Update 2012 reveals that catastrophe bond issuance for the period reached USD2.1bn as investors continued to deploy capital into the sector.

Retaining strong momentum from Q1, where ILS issuance reached record levels with USD1.5bn of deals brought to market, a total of seven transactions closed during Q2 2012, featuring both new and repeat sponsors.

Meanwhile, in contrast to the negative returns of Q1 2012, Aon Benfield's ILS Indices rebounded in Q2 to all post mark-to market gains. The All Bond and BB-Rated Bond Indices increased by 2.74 percent and 2.49 percent respectively, while the U.S. Hurricane Bond and U.S. Earthquake Bond Indices increased by 1.94 percent and 2.32 percent respectively during the period.

Paul Schultz, Chief Executive Officer of Aon Benfield Securities, said: "The Q2 ILS issuance figures were excellent, and brought the total issuance for the first half of 2012 very close to record levels. Issuance for the first half stood at $3.6bn, which was just short of the all time high of $3.8bn achieved during the same period in 2007. The pipeline for the remainder of 2012 remains strong, and we are pleased to see healthy levels of capital inflows from both seasoned investors and newer entrants to the ILS sector."

Aon Benfield Securities maintains the higher end of its Q1 2012 forecast that full year 2012 ILS issuance will be in the region of USD6bn.

To view the full Insurance-Linked Securities Second Quarter Update 2012 report, please follow the link below:
http://thoughtleadership.aonbenfield.com/Documents/201207_ab_securities_ils_quarterly_update_q22012.pdf

About Aon Benfield Securities

Aon Benfield Securities, Inc. and Aon Benfield Securities Limited (collectively, "Aon Benfield Securities") provide insurance and reinsurance clients with a full suite of insurance-linked securities products, including catastrophe bonds, contingent capital, collateralized reinsurance, industry loss warranties, sidecars and derivative products. As a recognized leader in this investment banking market, Aon Benfield Securities is helping to redefine capital by offering underwriting and placement of new issues, financial advisory services, as well as securities trading in the secondary market. Aon Benfield Securities' integration with Aon Benfield Inc's reinsurance operation expands its capability to provide analytics, modeling, rating agency, and other consultative services. Aon Benfield Inc., Aon Benfield Securities, Inc. and Aon Benfield Securities Limited are all wholly-owned subsidiaries of Aon plc. Securities advice, products and services are offered solely though Aon Benfield Securities, Inc. and/or Aon Benfield Securities Limited.

About Aon Benfield

Aon Benfield, a division of Aon plc, is the world's leading reinsurance intermediary and full-service capital advisor. We empower our clients to better understand, manage and transfer risk through innovative solutions and personalized access to all forms of global reinsurance capital across treaty, facultative and capital markets. As a trusted advocate, we deliver local reach to the world's markets, an unparalleled investment in innovative analytics, including catastrophe management, actuarial and rating agency advisory. Through our professionals' expertise and experience, we advise clients in making optimal capital choices that will empower results and improve operational effectiveness for their business. With more than 80 offices in 50 countries, our worldwide client base has access to the broadest portfolio of integrated capital solutions and services. To learn how Aon Benfield helps empower results, please visit aonbenfield.com.

About Aon

Aon plc (NYSE: AON) is the leading global provider of risk management, insurance and reinsurance brokerage, and human resources solutions and outsourcing services. Through its more than 61,000 colleagues worldwide, Aon unites to empower results for clients in over 120 countries via innovative and effective risk and people solutions and through industry-leading global resources and technical expertise. Aon has been named repeatedly as the world's best broker, best insurance intermediary, reinsurance intermediary, captives manager and best employee benefits consulting firm by multiple industry sources. Visit www.aon.com for more information on Aon and www.aon.com/manchesterunited to learn about Aon's global partnership and shirt sponsorship with Manchester United.

SOURCE Aon plc