Sunshine Re Ltd. (Series 2013-1)

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.

Sunshine Re Ltd. (Series 2013-1) - At a glance:

  • Issuer / SPV: Sunshine Re Ltd. (Series 2013-1)
  • Cedent / Sponsor: Florida Municipal Insurance Trust
  • Placement / structuring agent/s: Towers Watson Capital Markets are structuring agent and bookrunner
  • Risk modelling / calculation agents etc: The participating investors undertook their own risk modelling
  • Risks / Perils covered: Florida hurricanes
  • Size: $20m
  • Trigger type: Indemnity
  • Ratings: NR
  • Date of issue: May 2013

Sunshine Re Ltd. (Series 2013-1) - Full details

Sunshine Re Ltd. is a Bermuda domiciled special purpose insurer established on the 18th April for the purpose of issuing series of catastrophe bond notes.

This first Series 2013-1 issuance sees a single $20m tranche of notes being issued to provide the sponsor with a source of fully-collateralized reinsurance protection against Florida named storms.

The Sunshine Re cat bond transfers risks associated with named Florida windstorms on a per-occurrence basis over a three-year risk period for FMIT.

The $20m tranche of notes has a coupon of 9.25%.

Sunshine Re Ltd. has been arranged and issued on behalf of an interesting first time cat bond sponsor, the Florida Municipal Insurance Trust (FMIT). This organisation is the insurer to the Florida League of Cities, which looks after the interests of Florida municipal governments.

The cat bond coverage has been designed to dovetail with an existing layer of traditional reinsurance. The transaction effectively sees FMIT take a portion of its penultimate excess-of-loss layer of traditional reinsurance protection and on a pro-rata basis transfer it to the capital markets.

The remainder of that reinsurance layer provides one-year protection, so by leveraging the capital markets FMIT has successfully extended that layer of its reinsurance tower to include multi-year protection.

TWCM said that the portion of this layer transferred to the capital markets achieved attractive pricing for multi-year collateralized cover.

Given the municipal nature of the sponsor, the underlying book of property consists of governmental and municipal buildings, which is interesting as it perhaps offers a small element of diversification when compared to all other Florida wind or hurricane cat bonds which consist of residential homeowners and commercial properties.

There was no risk modelling agency used for this deal as investors undertook their own risk modelling.




Go back to the Catastrophe Bond Deal Directory

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.














Jardine Lloyd Thompson Capital Markets