The catastrophe bond market saw a more stable pricing environment in the fourth-quarter of 2023, as the trend towards tighter pricing that had begun earlier in the year slowed down, Aon Securities has said.
In the latest report from the specialist insurance-linked securities (ILS) investment banking group of global insurance and reinsurance broker Aon, the unit explained that market dynamics helped to balance supply and demand more, resulting in price stabilisation.
“Catastrophe bond pricing tightened throughout the course of 2023; by June, for example, industry loss index catastrophe bond pricing tightened by up to 40%,” Aon Securities said.
