Validus sponsors $400m cat bond issuance

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  • Extra cover: Validus is sponsoring a $400 million catastrophe bond issuance

    Extra cover: Validus is sponsoring a $400 million catastrophe bond issuance


Bermudian reinsurance firm Validus Holdings is sponsoring a $400 million catastrophe bond issuance.

The issuance will be made through the newly formed Bermuda special purpose insurer Tailwind Re Ltd in the form of three tranches with varying levels of risk.

The bonds will be listed on the Bermuda Stock Exchange, which confirmed the admission to listing yesterday.

The transaction will provide retrocession and reinsurance to Validus Re, Talbot Underwriting and Validus’s syndicate at Lloyd’s of London, Western World and other subsidiaries of the firm, according to the alternative risk transfer website Artemis.bm.

The Tailwind Re 2017-1 cat bond will provide coverage for multiple perils of US, Canada, Puerto Rico and the US Virgin Islands, named storms and earthquakes.

The reinsurance protection from the Tailwind Re 2017-1 cat bond will run for a four-year period.

Artemis reported that the offering was increased 23 per cent from the initially targeted amount to $400 million during marketing, as strong demand allowed the price guidance to drop below the initially marketed range for each tranche.

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Published Dec 28, 2017 at 8:00 am (Updated Dec 27, 2017 at 6:57 pm)

Validus sponsors $400m cat bond issuance

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