Everglades Re II Ltd. (Series 2017-1)
The Artemis Catastrophe Bond and Insurance-linked Securities Deal Directory aims to provide a one-stop resource for information on every cat bond and ILS transaction we hold information on. The content of this Deal Directory is provided as is and there will be some omissions. Help us to keep these cat bond and ILS transaction summaries up to date by contacting us if you see an error or omission that you can correct.
Everglades Re II Ltd. (Series 2017-1) - At a glance:
- Issuer / SPV: Everglades Re II Ltd. (Series 2017-1)
- Cedent / Sponsor: Citizens Property Insurance
- Placement / structuring agent/s: Citigroup is sole structuring agent and bookrunner. BofA Merrill Lynch is joint bookrunner.
- Risk modelling / calculation agents etc: AIR Worldwide
- Risks / Perils covered: Florida named storms
- Size: $250m
- Trigger type: Indemnity
- Ratings: NR
- Date of issue: May 2017
Everglades Re II Ltd. (Series 2017-1) - Full details
Florida Citizens fifth catastrophe bond in the Everglades Re series of transactions. This Everglades Re II 2017-1 cat bond targets $250m or greater of Florida named storm reinsurance protection.
The Everglades Re II transaction being marketed to investors will offer a single $250 million Series 2017-1 tranche of Class A notes, we understand, with exposure linked to Florida named storm risks across a three-year term.
The notes will provide Florida Citizens with a fully collateralized source of annual aggregate reinsurance protection against losses from named storms (so the impacts of tropical storms and hurricanes) hitting Florida, with the cat bond featuring an indemnity trigger.
Subject business is all from the Citizens coastal account, and consists of both personal and commercial residential property exposures.
We’re told that the notes will attach at $2.151 billion and cover a percentage of losses up to $3.031 billion, which does leave ample room for the transaction to upsize should Citizens choose to.
The resulting initial attachment probability is 2.49% and the expected loss 1.95% for the Everglades Re II 2017-1 notes. The currently $250 million of notes are being offered to investors with coupon price guidance in a range of 5% to 5.75%.
The Artemis Catastrophe Bond & Insurance-Linked Securities Deal Directory is copyright © Steve Evans Ltd. Reproduction or publication without permission is not permitted. Use of this information within a commercial product, or for profit, without a license is strictly prohibited. Contact us if you would like to use this content or to discuss licensing.