The global insurance-linked securities (ILS) market held up in the third quarter despite the spate of natural catastrophes, according to Willis Towers Watson.

“A word of caution remains appropriate because we are still early in loss development and [the year] is not even over, so more catastrophes might still occur,” it says in its latest market update.

“Thus far, as a whole, ILS investors and traditional reinsurers have performed well, supporting insurers, as insurers in return do their job to serve policyholders.”

Two non-life catastrophe bonds worth $US460 million ($589 million) were issued in the third quarter, the update says.

One transaction was sponsored by the Mexican Government for $US360 million ($461 million) of parametric cover.