The latest catastrophe bond from U.S. insurer Chubb Group has closed and priced at an upsized $150m. The fifth cat bond from Chubb, East Lane Re V Ltd. began marketing as a $125m cat bond in two Series 2012-1 tranches, seeking a source of collateralized reinsurance cover on an indemnity trigger, per-occurrence basis over a four-year risk period to protect Chubb subsidiaries against certain U.S. hurricanes and severe thunderstorms. The deal upsized by $25m during marketing to secure Chubb $150m of cover by close.
The transaction priced towards the upper end of guidance. The $75m of Class A notes didn’t upsize and priced right at the top end of the range at 9% above Treasury money market funds. The riskier Class B tranche of notes, which have a lower attachment point, upsized to $75m and priced slightly under the top of the guidance range at 10.75% above TMMF.
The cat bond notes issued by East Lane Re V will likely be rated in the next day or so and we’ll update you then.
Subscribe for free and receive weekly Artemis email updates
Sign up for our regular free email newsletter and ensure you never miss any of the news from Artemis.