Palomar encouraged by investor response to new Torrey Pines cat bond

Palomar encouraged by investor response to new Torrey Pines cat bond

Palomar Insurance Holdings, the speciality California-headquartered insurance company that offers mostly disaster exposed property products, has expressed its satisfaction at the successful upsizing and closing of its brand-new Torrey Pines Re Pte. Ltd. (Series 2021-1) earthquake catastrophe bond at $400 million.As we d previously reported, this brand-new feline bond was Palomars first see to the catastrophe bond market considering that 2017, when the insurance company sponsored a $166 million Torrey Pines Re Ltd. (Series 2017-1) deal.
Palomar went back to the catastrophe bond market in February, targeting sponsorship of a $300 million earthquake threat just cat bond, using Singapore as the residence for issuance.
Demand for the feline bond keeps in mind assisted the insurer to lift the issuance size and so the Singapore based special function reinsurance lorry, Torrey Pines Re Pte. Ltd., effectively issued $400 million of notes, throughout 2 tranches.
Both of the tranches of notes issued likewise saw their prices decrease, to the lowest-end of initial coupon spread guidance, once again indicating a successful cat bond execution.
Palomar kept in mind that the indemnity-based reinsurance provided by the catastrophe bond, which covers it for losses from earthquake events, was developed to perfectly suit its existing traditional disaster reinsurance program.
Mac Armstrong, Chairman and Chief Executive Officer of Palomar, discussed the successful issuance, “The Torrey Pines Re transaction enables Palomar to further build on its management position in the earthquake insurance coverage area. We think the success of the issuance reflects catastrophe bond investor self-confidence in our ability to underwrite this line of work.
” The multi-year protection enables us to strengthen our robust reinsurance program and provide improved presence into our results, which in turn benefits our customers, distribution partners and investors.
Heath Fisher, President of Palomar, added, “We are motivated by the warm investor reception of our go back to the catastrophe bond market. This result underscores the differentiated nature of our insurance coverage portfolio and strong demand for innovative earthquake products.
” We pride ourselves on the strength of our reinsurance program, and this issuance represents a crucial element of our technique that pays for multi-year, insurance-linked securities (” ILS”) capability to strengthen our panel of reinsurance capital suppliers.”
The cat bond backed reinsurance security will benefit Palomars underwriting companies Palomar Specialty Insurance Company and Palomar Surplus and excess Insurance Company.
We understand that Palomar is set to increase its overall reinsurance program in size this year, with the Torrey Pines feline bond set to play a considerable role.
For the insurance company, bringing efficient sources of reinsurance capital into its tower helps to provide included capability to support its continued development into disaster exposed property lines of organization.
You can read everything about the Torrey Pines Re Pte. Ltd. (Series 2021-1) disaster bond and every deal issued since 1996 in the Artemis Deal Directory.

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