Catastrophe bonds returning double digits in 2012 despite Superstorm Sandy

The Swiss Re Cat Bond Total Return index posted gains of 10% through the first 51 weeks of 2012. The returns are quite impressive given that insurers such as Lloyd's of London and Swiss Re have estimated total market losses from Superstorm Sandy could be as high as $25 billion. Since its inception in 2002, the index has posted an average annualized return of 8.4%.