Cayman leads in cat bonds

More than $7.7 billion in bonds
have now been listed on the Cayman Islands Stock Exchange.

Catastrophe bonds bring a broad
range of benefits to insurers and insureds on a global basis by increasing the
pool of funding and reducing insurance costs to end users. Cayman has 74 series
of catastrophe bonds listed with a value of $7.7 billion while Bermuda has just
10 bonds listed with a value of $1.1 billion

“When you consider that the first
cat bond was only listed in April 2007 it has been a great success story for
Cayman and the Cayman Stock Exchange, particularly since Bermuda has in the
past had the leading position in insurance related products,” said Cayman
Finance Chairman Anthony Travers.

Mr. Travers said the latest figures
demonstrate the adaptability of Cayman’s financial services industry, taking
the structured finance model and providing a new form of insurance related
product.

“These are fully regulated and
transparent structures and, contrary to the misperceptions that still persist
amongst a hard core of left leaning European bureaucrats, are quite typical of
the well-structured financial products that are attracted to an offshore
financial centre like the Cayman Islands precisely because of the quality of
its legal and regulatory regime” said Mr. Travers.

The news on the cat bonds comes
shortly after figures emerged on the increasing number of hedge funds that are
now registering in Cayman. Over 100 new funds are being registered each month.

The Cayman Islands are on track for
more than 10,200 registrations by financial year end. “This will exceed the
all-time high watermark for the Cayman Fund Industry,” said Mr. Travers.

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