Lodestone Re Ltd. (Series 2010-1)
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Lodestone Re Ltd. (Series 2010-1) - At a glance:
- Issuer / SPV: Lodestone Re Ltd. (Series 2010-1)
- Cedent / Sponsor: Chartis
- Placement / structuring agent/s: AON Benfield Securities and BNP Paribas are joint bookrunners. AON Benfield Securities structured the deal
- Risk modelling / calculation agents etc: RMS
- Risks / Perils covered: U.S. hurricane, U.S. earthquake
- Size: $425m
- Trigger type: Industry loss index
- Ratings: S&P: Class A - 'BB+', Class B - 'BB'
- Date of issue: May 2010
- Artemis.bm news coverage: Articles discussing Lodestone Re Ltd. (Series 2010-1) from Artemis.bm
Lodestone Re Ltd. (Series 2010-1) - Full details
Chartis’ first catastrophe bond issuance. The transaction was issued by Chartis for their National Union Fire Insurance subsidiary in the U.S.
Lodestone Re Ltd. is a Bermuda based SPV set up for the specific purpose of issuing $250m worth of insurance-linked securities to provide Chartis’ subsidiary with a source of reinsurance against both U.S. windstorms and earthquakes.
On completion the deal grew to $425m in size demonstrating the potential for appetite in the ILS investment market for U.S. wind risks right before the hurricane season begins.
This bond uses a trigger with state specific payment factors on a per-occurrence basis.
The deal has been structured into two tranches ($175m Class A and $250m Class B).
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