Security First targets $100m First Coast Re III Singapore-based cat bond

Security First targets $100m First Coast Re III Singapore-based cat bond

Florida headquartered Security First Insurance Company is back in the catastrophe bond market, sponsoring a $100 million First Coast Re III Pte. Ltd. (Series 2021-1) deal, that will be its fourth feline bond issuance, its 2nd feline bond to be issued out of Singapore.The Floridian insurance coverage carrier has returned to the capital markets to add more fully-collateralized multi-peril reinsurance capacity with the assistance of international reinsurer Swiss Re.
Swiss Re functions as a ceding reinsurer and for that reason an avenue in between Security First Insurance and the feline bond and insurance-linked securities (ILS) investors that will back this deal.
In addition, Swiss Res Capital Markets team is likewise acting as sole structuring agent and bookrunner for the First Coast Re III Pte feline bond issuance, our sources stated.
Security First was last in the feline bond market in 2019, when it protected a four-year slice of called storm and severe thunderstorm defense from the First Coast Re II Pte. Ltd. (Series 2019-1) deal.
The insurance company has registered a brand-new Singapore based unique function reinsurance lorry for its fourth feline bond, with First Coast Re III Pte. Ltd. set to issue a single Class A tranche of Series 2021-1 notes.
The present target is for a $100 million tranche of Class A notes to be issued, with the notes set to be offered to investors and the profits utilized to collateralize retrocession contracts between Swiss Re and First Coast Re III Pte, which Swiss Re will then pass on the reinsurance cover to Security.
Were told the $100 million of Class A Series 2021-1 notes to be issued by First Coast Re III Pte will be exposed to Florida named storms and severe thunderstorms, throughout a nearly 4 year term.
Coverage is slated to begin from June 1st 2021 and run through completion of March 2025, giving the cat bond a nearly four year term. Defense will be on an indemnity trigger and cascading, per-occurrence basis, were told.
We comprehend the $100 million of Class A notes have a preliminary predicted loss of 1.86% and that the notes are being provided to feline bond financiers with voucher guidance in a variety from 6.75% to 7.5%.
You can read everything about the First Coast Re III Pte. Ltd. (Series 2021-1) transaction and over 700 other insurance-linked securities (ILS) deals in the Artemis Deal Directory.

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