Guy Carpenter & Co has issued a report on catastrophe bonds, indicating that there was "an unprecedented level of activity" in 2005.
The Marsh & McLennan subsidiary indicates that there was a record total issuance of $1.99bn in 2005. This represents an increase of 74% on the previous year.
Six players entered the cat bond market for the first time, including AXA, PXRE, Montpelier Re and Zurich American Insurance.
Guy Carpenter indicates that the increase in cat bond activity can largely be attributed to Hurricane Katrina.
The report also highlights the total reported loss of $190m suffered by Kamp Re. This would represent the first total loss to a publicly disclosed cat bond.
