East Lane Re III Ltd.
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East Lane Re III Ltd. - At a glance:
- Issuer / SPV: East Lane Re III Ltd.
- Cedent / Sponsor: Chubb Group
- Placement / structuring agent/s: Citibank act as swap guarantor
- Risk modelling / calculation agents etc: AIR Worldwide
- Risks / Perils covered: U.S. hurricane
- Size: $150m
- Trigger type: Indemnity
- Ratings: S&P: 'BB'
- Date of issue: Feb 2009
- Artemis.bm news coverage: Articles discussing East Lane Re III Ltd. from Artemis.bm
East Lane Re III Ltd. - Full details
Chubb’s third deal in the East Lane series, East Lane Re III provides three years of cover to Federal Insurance Company and other Chubb subsidiaries.
This deal transfers a portion of Chubb’s Florida hurricane residential personal lines exposure to the capital markets via a securitization. Chubb will retain 10% of the exposure ceded.
Standard & Poor’s have rated the $150m of notes BB. The bond covers Chubb for losses above $850m up to $1.15b.
The deal is structured so that Chubb can extend the deal for up to 18 months to allow for any developing losses to be accounted for. The assets in the collateral account will be a mix of government backed securities with similar durations to the transaction.
East Lane Re III is a Cayman Islands domiciled special purpose vehicle.
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