Citrus Re Ltd. Series 2017-1

Heritage Insurance Holdings, Inc., the Florida focused property and casualty insurer, has benefited from more reinsurance recoveries under its Citrus Re catastrophe bond series of deals, with more tranches seeing principal reductions, one of which has now been allowed to mature.

One of the loss-exposed tranches of Florida focused property and casualty insurer Heritage Insurance Holdings, Inc’s Citrus Re Ltd. catastrophe bonds has been partially redeemed by investors, with now $36.7 million of collateral from the originally $125 million tranche still retained by the sponsor and its maturity further extended.

Secondary trading activity in catastrophe bonds has remained light following the landfall of hurricane Irma, even though some broker desks accepted enquiries over the weekend. Not many positions have changed hands, but notable is the price recovery of the Citrus Re 2017 cat bond and the fact a Citrus Re 2015 and 2016 trade saw […]

A number of secondary catastrophe bond trades were seen as major hurricane Irma intensified on track towards the United States, possibly Florida, with the Citrus Re Ltd. (Series 2017-1) leading the prices down having traded at 50 yesterday, so discounted 50% on the possibility of an Irma loss for sponsor Heritage.

Collateralized reinsurance markets and ILS funds have significantly increased their share of the insurer Heritage’s risk transfer program, with a number of new ILS managers featuring in the company’s latest reinsurance program disclosure.

The pricing guidance for insurer Heritage’s recently launched $125 million Citrus Re Ltd. (Series 2017-1) catastrophe bond has fallen again, now being fixed at the bottom end of the lowered coupon guidance range.

Coupon price guidance for the recently launched $125 million Citrus Re Ltd. (Series 2017-1) catastrophe bond has been lowered significantly, as investor demand for cat bond investments looks set to offer sponsors very attractive conditions.

Heritage Property & Casualty Insurance Company is returning to the capital markets for its fifth Citrus Re named catastrophe bond issuance as it seeks to expand its collateralised reinsurance protection, with a $125 million sized Citrus Re Ltd. (Series 2017-1).