AT1-Like Debt for Insurers Sees Record $10 Billion Sales (1)

An insurance bond market with similarities to banks’ Additional Tier 1s is booming, boosted by a rush to sell debt ahead of a key regulatory deadline.

Annual supply of Restricted Tier 1 bonds has surged past the $10 billion mark for the first time after a €300 million ($348 million) deal by Dutch insurer Achmea BV earlier this week, based on data compiled by Bloomberg. Large RT1 sales by Assicurazioni Generali SpA and Allianz SE have also helped issuance far surpass any other year since the securities were introduced in 2016.

The boom in the most junior type of insurance ...