Pelican Re Ltd. (Series 2012-1)
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 Re Ltd. (Series 2012-1) - At a glance:
- Issuer / SPV: Pelican Re Ltd. (Series 2012-1)
- Cedent / Sponsor: Louisiana Citizens
- Placement / structuring agent/s: Aon Benfield Securities are structuring the deal
- Risk modelling / calculation agents etc: AIR Worldwide
- Risks / Perils covered: Louisiana hurricane
- Size: $125m
- Trigger type: Indemnity
- Ratings: NR
- Date of issue: Apr 2012
- Artemis.bm news coverage: Articles discussing Pelican Re Ltd. (Series 2012-1) from Artemis.bm
Pelican Re Ltd. (Series 2012-1) - Full details
The first cat bond under a newly formed Cayman Islands special purpose insurer, Pelican Re Ltd. was formed to issue cat bonds on behalf of Louisiana Citizens Property Insurance Corporation.
This first Series 2012-1 cat bond from Pelican Re is designed to provide Louisiana Citizens with 3 years of indemnity based (UNL) cover for hurricanes in Louisiana state on a per occurrence basis.
It’s understood that this cat bond will provide a relatively low level of cover, with a low attachment point, and so will protect Louisiana Citizens against even smaller hurricanes. This does mean that the coupon paid to investors is expected to be high making the deal attractive to them.
The Pelican Re deal began marketing as a $100m single tranche of notes but increased in size to $125m before close. The notes have a low attachment point as Lousiana Citizens are seeking a robust layer of cover. The notes attach at $200m of losses and the exhaustion point is set at $400m. This translates into a high probability of attachment at 4.74% and a high expected loss of 3.25%. Unsurprisingly the pricing for the deal is quite high with the coupon set to be 13.75% above money market funds which is towards the top end of the expected range.
This cat bond was not rated. The single tranche of notes have been listed on the Caymans Islands Stock Exchange and the shelf programme is available until April 2017 for Louisiana Citizens to issue more cat bond notes if they choose.
The Artemis Catastrophe Bond & Insurance-Linked Securities Deal Directory is copyright © Steve Evans Ltd. Reproduction or publication without permission is not permitted. Contact us if you would like to use this content.