RenRe targets 67% larger, lower priced, $250m Mona Lisa Re cat bond

RenRe targets 67% larger, lower priced, $250m Mona Lisa Re cat bond

RenaissanceRe is targeting an increased issuance size for its latest catastrophe bond, with the business now looking for 67% more multi-peril reinsurance security from the brand-new Mona Lisa Re Ltd. (Series 2021-1) transaction, at decreased pricing compared to preliminary guidance.Bermuda-headquartered global reinsurance form RenaissanceRe (RenRe) brought its most current disaster bond deal to market earlier this month, with its Mona Lisa Re car intending to use a $150 million single tranche of notes to feline bond investors.
With cat bond market conditions strong and capacity among its funds and investors growing, RenRe is set to gain from this, as were informed the deal is likely to now upsize by 67% to a $250 million issuance.
As a result, this Mona Lisa Re 2021-1 cat bond will offer $250 countless collateralized retrocessional reinsurance cover for RenRe and its DaVinci Re Ltd. vehicle, a third-party capital backed equity-based joint-venture reinsurer operated by the company.
The $250 million of retro reinsurance will provide RenRe, DaVinci Re and affiliates with a 4 year source of collateralized security against losses from U.S., Puerto Rico, U.S. Virgin Islands and D.C. called storms and earthquakes, along with Canada earthquakes, on an industry loss trigger and yearly aggregate basis.
The now $250 million of Series 2021-1 Class A notes to be issued by Mona Lisa Re will have a preliminary anticipated loss of 3.71%. When the deal was smaller at its launch to financiers, the notes were used with voucher spread assistance of 7.5% to 8.25%.
Now, were told by sources that the spread assistance has been reduced, with the variety now marketed at 7% to 7.5%.
Need to this cat bond offer close at the revised mid-point, that would represent an approximately 8% drop in voucher prices from the initial mid-point of guidance, which alongside the increased size would be an excellent outcome for its sponsor.
You can read all about this most current Mona Lisa Re Ltd. (Series 2021-1) catastrophe bond transaction from RenaissanceRe and every other feline bond issued in our comprehensive Deal Directory.

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