Pelican IV Re 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.
Pelican IV Re Ltd. (Series 2017-1) - At a glance:
- Issuer / SPV: Pelican IV Re Ltd. (Series 2017-1)
- Cedent / Sponsor: Louisiana Citizens Property Insurance Corporation
- Placement / structuring agent/s: GC Securities is sole structuring agent and bookrunner.
- Risk modelling / calculation agents etc: AIR Worldwide
- Risks / Perils covered: Louisiana named storm
- Size: $100m
- Trigger type: Indemnity
- Ratings: NR
- Date of issue: Apr 2017
Pelican IV Re Ltd. (Series 2017-1) - Full details
Louisiana Citizens fourth catastrophe bond transaction sees it looking for reinsurance coverage on a more remote, higher layer of its tower than the previous deals, as it looks to tap the capital markets for cover that will attach at $350 million of Louisiana named storms indemnity losses.
Pelican IV Re is a newly established Bermuda special purpose insurance vehicle. For this deal, Pelican IV Re will seek to issue a single tranche of Series 2017-1 Class A notes, which will be sole to investors to collateralize a reinsurance agreement between it and the sponsor Louisiana Citizens.
The $100 million of notes will cover the sponsor against losses from Louisiana named storms (so tropical storms and hurricanes), on a per-occurrence basis and using an indemnity trigger structure.
The notes will attach at $350 million of losses to Louisiana Citizens and cover it up to $450 million, giving them an attachment probability of 1% and an expected loss of 0.86%.
The Pelican Re IV 2017-1 notes are being offered to ILS investors with coupon guidance of 2.75% to 3.25%, which as multiples go is relatively high, so again this cat bond could well price down during its marketing phase.
Price guidance was reduced thanks to investor demand and the $100 million of Pelican IV Re notes are now being offered to cat bond investors with lowered price guidance of 2.25% to 2.75%.
Demand from investors eventually helped the coupon come down to the bottom of the already reduced range and price guidance was fixed at 2.25%.
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.