RenRe targets $150m Mona Lisa Re 2021-1 catastrophe bond

RenRe targets $150m Mona Lisa Re 2021-1 catastrophe bond

Bermuda-headquartered global reinsurer RenaissanceRe is back in the disaster bond market to include to its collateralized retrocession from ILS financiers, with a brand-new Mona Lisa Re Ltd. (Series 2021-1) transaction seeking $150 million or more of multi-peril protection.RenaissanceRe (RenRe) went back to the 144A disaster bond market in early 2020 with its first issuance considering that 2013, an eventually $400 million Mona Lisa Re Ltd. (Series 2020-1) transaction.
At the time, we described that this was a clear indication that retro market conditions were making cat bond coverage more appealing to sponsors.
Now, in 2021, after cat bond prices have actually softened year-on-year for numerous issuances, conditions might be a lot more attractive for sponsors, so its not unexpected to see RenRe back again.
Like the 2020 feline bond, RenRe is looking for collateralized retrocessional reinsurance to cover itself and its DaVinci Re Ltd. car, a third-party capital backed equity-based joint-venture reinsurer operated by RenRe, were told.
RenRes Bermuda domiciled unique function insurance provider (SPI) Mona Lisa Re Ltd. will issue a single tranche of Series 2021-1 feline bond notes, that will be sold to investors and the profits utilized to collateralise underlying retro reinsurance arrangements between the company and the beneficiaries of protection.
The single tranche of notes, currently targeted at $150 million in size or higher, will supply RenRe, DaVinci Re and affiliates with a four year source of collateralized retro reinsurance security versus losses from U.S., Puerto Rico, U.S. Virgin Islands and D.C. named storms and earthquakes, in addition to Canada earthquakes.
Coverage will be on a market loss trigger and yearly aggregate basis, we comprehend, with PCS loss index data used as the input and including personal, industrial and automobile line losses.
Were told the structure will include a franchise deductible per-qualifying disaster loss event.
The $150 countless Series 2021-1 Class A notes to be provided by Mona Lisa Re will have an initial anticipated loss of 3.71% and are being used to financiers with discount coupon spread guidance of 7.5% to 8.25%, sources discussed.
Its good to see to see RenaissanceRe back in the catastrophe bond market again, clearly reflecting the appealing execution conditions that sponsors are seeing in the market at this time.
While the retro market continued to be a little constrained for capability around the mid-year renewals, with rates firming further, the disaster bond market continues to offer a appealing and well-priced option.
This is tempting more sponsors to the market at this time, as evidenced by the flurry of activity in current weeks and might drive 2021 to more disaster bond issuance records if it continues through the remainder of the year.
Weve included this most current catastrophe bond transaction from RenaissanceRe to our extensive Deal Directory.
Well upgrade you as and when any further information on this Mona Lisa Re Ltd. (Series 2021-1) feline bond comes to light.

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