Valais Re Ltd.

This is Flagstone Re’s first entry into the cat bond market. Valais Re will provide fully collateralized retrocessional coverage on an indemnity basis to Flagstone’s worldwide natural catastrophe portfolio for three years. The deal was formed as a program structure enabling further issuance of additional series of notes in the future.

The deal has been structured in two tranches. One of $64m class A notes to provide annual aggregate indemnity cover and a second of $40m class C notes to provide cover per occurrence to collateralize its obligations under the retrocession agreements.

The perils covered under the deal are U.S. windstorm and earthquake, Japanese typhoon and earthquake and European windstorm, as well as protection against annual aggregate worldwide peril losses.

Another $30m of class B notes were withdrawn during placement due to an inability to place the tranche.