The Longpoint Re II Ltd. U.S. hurricane risk catastrophe bond from Travelers Indemnity Company is reported to have been upsized to $500m. That’s double the initial value the transaction was initially marketed at and further demonstrates the current health and appeal of the cat bond market. Investor demand is said to the reason for the increase. Both tranches of notes in the transaction are now $250m.
This takes the cat bond market beyond the magic figure of $3B for the year (with the currently $225m Lakeside Re II to come), a very healthy amount given the issues faced last year. You can read full details on Longpoint Re II Ltd. and all other catastrophe bonds issued during 2009 in our Deal Directory.
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