New $500m cat bond domiciles in Bermuda
Another sizeable catastrophe bond has been listed on the Bermuda Stock Exchange, underscoring the Island’s leading position as a global centre for the insurance-related securities.
The $500 million of Series 2013-1 notes issued by Bermuda-domiciled special purpose insurer Tar Heel Re Limited makes the newly-listed cat bond one of the biggest to hit the market.
It follows close behind last month’s Bermuda listing of Citizens Everglades Re $250 million cat bond.
It is estimated the Island has attracted a third of the $18 billion global market in cat bonds. Tar Heel Re (Series 2013-1) has been given a ‘B+(sf)’ rating by Standard & Poor’s.
The notes cover hurricane losses in North Carolina and are sponsored by the North Carolina Joint Underwriters Assocation as well as the North Carolina Insurance Underwriters Assocation.
The cat bond collateralises a reinsurance agreement with Munich Re, although covered losses will not be directly linked to Munich Re America’s exposure in the state, but will cover the loss experience of the two aforementioned North Carolina underwriting associations.
The listing sponsor is Appleby Securities (Bermuda) Limited.
Need to
Know
2. Please respect the use of this community forum and its users.
3. Any poster that insults, threatens or verbally abuses another member, uses defamatory language, or deliberately disrupts discussions will be banned.
4. Users who violate the Terms of Service or any commenting rules will be banned.
5. Please stay on topic. "Trolling" to incite emotional responses and disrupt conversations will be deleted.
6. To understand further what is and isn't allowed and the actions we may take, please read our Terms of Service
