Hamilton Re sponsors its first cat bond
Hamilton Re has sponsored its first catastrophe bond to provide $60 million of collateralised reinsurance coverage.
The issuance of the series 2019-1 principal at-risk variable rate notes issued by Cerulean Re SAC Ltd, acting in respect of the segregated account designated as “Easton 2019-1”, was conducted by the Hamilton Capital Partners business unit.
The cat bond will provide reinsurance capacity against certain losses from US named storms and US earthquakes, across two classes of notes, on an industry loss trigger and per-occurrence basis.
Kathleen Reardon, chief executive officer of Hamilton Re, said: “This cat bond will provide additional, diverse reinsurance protection for our portfolio, alongside our traditional reinsurance coverages, and serve to further enhance our positioning within the capital markets.
“Successfully navigating this solution among broader market uncertainties is evidence of Hamilton Re's progress in this space and further strengthens our ability to serve our clients.”
Cerulean is a licensed as a special purpose insurer and registered as a segregated accounts company. GC Securities acted as arranger, sole structuring agent and placement agent. Mayer Brown LLP acted as legal counsel.