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On average, successful 144A cat bonds upsized by 63% in Q1 2021

April 14, 2021

Strong investor appetite enabled sponsors of traditional 144A catastrophe bond transactions to upsize target levels of reinsurance protection during the first-quarter of the year.

A factor of Q1 2021 catastrophe bond and related insurance-linked securities (ILS) issuance was the upsizing of property catastrophe deals.

Artemis’ data shows that during the period, 11 out of 13 tranches issued upsized from their initial target.

Driven by favourable market conditions and robust investor appetite for reinsurance-linked returns, sponsors secured an average upsize while marketing of 63% in Q1 2021.

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