Universal’s Cosaint Re cat bond sees pricing fall below guidance

Universal’s Cosaint Re cat bond sees pricing fall below guidance

Florida headquartered insurance company Universal Insurance Holdings now looks most likely to secures its very first catastrophe bond, the Cosaint Re Pte. Ltd. (Series 2021-1) deal, with rates below the low-end of initial guidance, including another cat bond deal to the list of those pricing down.As we stated previously today, every property catastrophe bond issued or priced so far in 2021 has seen its prices decrease while being marketed to financiers in 2021, with the majority seeing their prices decrease to the bottom end of initial spread guidance and even lower.
Universals is the most recent to do so and the insurer looks set to secure the multi-year collateralized reinsurance from the Cosaint Re cat bond offer at a level roughly 6.4% below the mid-point of initial assistance.
Universal had actually currently upsized on the feline bond issuance, as we reported, with the offering growing from $100 million to $150 million for the business.
The Cosaint Re Pte. catastrophe bond will provide Universal with US called storm reinsurance on an indemnity and per-occurrence basis, across a three-year term, with coverage focused on Florida.
The now $150 million tranche of Class A notes have an initial expected loss of 2.97%.
The notes were at first used to catastrophe bond financiers with voucher guidance of 9.5% to 10.25%.
That was reduced, to spread assistance of 9.25% to 9.5%, so listed below the bottom-end of the preliminary variety.
Now, were informed this has actually been repaired at the lowest-end, of 9.25%, so roughly a -6.4% decline in prices from the initial mid-point the feline bond offer was marketed at.
That signals yet another catastrophe bond with strong execution and rates listed below initial expectations, a pleasing outcome for a very first time cat bond sponsor such as Universal.
Well upgrade you when the Cosaint Re Pte. Ltd. (Series 2021-1) catastrophe bond has priced and you can check out about this and every other feline bond deal in the Artemis Deal Directory.

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