New Cat Bond by Charles River Re | completed insurance business America
Bond has exceeded the target by 25% and is prepared to protect against named storms
reinsurance
By Kenneth Araullo
American European Insurance Company and ShoreOne Insurance Managers have announced their sponsorship of the catastrophe bond of Charles River Re Ltd. Series 2024-1 announced.
The bond, originally intended for $100 million, ultimately secured $125 million, a 25% increase in size.
As part of this transaction, American European enters into a reinsurance agreement with Charles River Re to provide protection against named storms.
In a press release, American European stated that the new Cat bond will benefit the company by expanding its risk transfer capacity and facilitating access to capital markets. The bond will also support ShoreOne-managed policies underwritten on behalf of American European.
Charles River Re Ltd. The Cat Bonds issued consist of Class A notes with a spread of 6.75%, an initial expected basis loss of 1.87% and utilizes a three-year indemnification trigger. The due date is scheduled for May 10, 2027.
The bond successfully closed on April 11, 2024, with GC Securities, a division of MMC Securities LLC, acting as sole structurer and bookrunner.
ShoreOne President and Chief Operating Officer Cameron Rhodes emphasized the importance of this development to operations.
“This catastrophe bond is another milestone in ShoreOne’s history and in its partnership with American European. This risk transfer protection will strengthen our ability to work together to close the coverage gap for coastal homeowners and the associated flood risk,” Rhodes said.
Nachum Stein, CEO of American European, also emphasized the strategic role of the new catastrophe bond in its reinsurance strategy.
“Our catastrophe bond is an essential part of our reinsurance structure and complements a tower backed by industry-leading reinsurers. We are pleased to have successfully sponsored our first catastrophe bond, working with ShoreOne, our valued partner in the coastal homeowner market. We are grateful for investors’ strong support for our shared mission,” said Stein.
What do you think about this story? Please share your comments below.
Stay up to date with the latest news and events
Join our mailing list, it’s free!
Source link
2024-04-12 13:05:00
www.insurancebusinessmag.com
