Cat bonds could reach $5bn

Aon Benfield Securities says the cat bond market will have strongest issuance since its inception for a year without a major claim. So far this year 11 catastrophe bonds have closed at $2.7bn, the Reuters reports.

Groupama is marketing a €100m bond to protect against windstorms in France.

Paul Schultz, president of Aon Benfield Securities, said: "If we get to levels in excess of $4bn, we will be setting a record for issuance not around a market dislocation," he said. Aon predicts a total of $5bn