Security First’s new cat bond jumps 125% to $225m, prices down 16%

Security First’s new cat bond jumps 125% to $225m, prices down 16%

Florida headquartered Security First Insurance Company is now set for its biggest catastrophe bond transaction yet, as its brand-new First Coast Re III Pte. Ltd. (Series 2021-1) issuance has more than doubled in size to $225 million while marketing.At the exact same time the rates on Security Firsts second disaster bond has been available in well under-guidance, reflecting attractive execution once again in the catastrophe bond market, as a sponsor locks in catastrophe reinsurance security over a multi-year period.
Security First Insurance Company returned to the catastrophe bond market for its second handle February, with the Forst Coast Re III Series 2021-1 transaction targeting a minimum of $100 countless reinsurance security for the business.
For its second feline bond deal, Security First changed its issuance to be domiciled in Singapore, as it aims to capitalise on the ILS grant program cost savings readily available there.
Global reinsurance company Swiss Re is serving as the delivering reinsurer, sitting as a channel in between Security First Insurance and the cat bond and insurance-linked securities (ILS) financiers that will invest in the plan.
The First Coast Re III Pte disaster bond will offer Security First Insurance with a source of Florida named storms and serious thunderstorms reinsurance security, throughout an almost four year term, with protection on an indemnity trigger and cascading, per-occurrence basis.
The offer introduced with a single Class A tranche of notes sized at $100 million, that have an initial predicted loss of 1.86%.
As said, the issuance has actually more than doubled in size and will see $225 million of notes offered to investors, were told, substantially increasing Security Firsts capital market backed reinsurance arrangements.
The notes were first used to cat bond investors with a discount coupon in a range from 6.75% to 7.5%.
Were now told that the notes priced to provide investors a coupon of simply 6%, so well listed below the initial guidance and a complete 16% decrease in rates from the preliminary midpoint of spread guidance.
Its a strong outcome for Security First, with its second disaster bond upsizing by 125%, while its rates fell by 16%, making the multi-year disaster reinsurance protection this new cat bond offers a lot more effective for the insurance provider.
You can check out everything about the First Coast Re III Pte. Ltd. (Series 2021-1) transaction and over 700 other insurance-linked securities (ILS) transactions in the Artemis Deal Directory.

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