Alamo Re II Pte. Ltd. (Series 2020-1)

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.

Share

Alamo Re II Pte. Ltd. (Series 2020-1) – At a glance:

  • Issuer: Alamo Re II Pte. Ltd.
  • Cedent / sponsor: Texas Windstorm Insurance Association (TWIA)
  • Placement / structuring agent/s: GC Securities is sole structuring agent and bookrunner
  • Risk modelling / calculation agents etc: AIR Worldwide
  • Risks / perils covered: Texas named storms and severe thunderstorms
  • Size: $200m
  • Trigger type: Indemnity
  • Ratings: NR
  • Date of issue: Jun 2020

Alamo Re II Pte. Ltd. (Series 2020-1) – Full details:

The Texas Windstorm Insurance Association (TWIA) has launched its expected 2020 catastrophe bond issuance, with a target for $200 million of new reinsurance protection from an Alamo Re II Pte. Ltd (Series 2020-1) transaction.

As expected, TWIA has registered a new special purpose insurer (SPI) for its latest catastrophe bond issuance, but for the first time it has selected Singapore as the issuance domicile, registering special purpose reinsurance vehcile Alamo Re II Pte. Ltd.

Alamo Re II Pte. Ltd. will seek to issue a single $200 million tranche of Series 2020-1 Class A notes, which will be sold to investors and the proceeds used to collateralise the necessary reinsurance agreement to provide coverage.

We understand that the Alamo Re II 2020-1 cat bond will provide TWIA with a three-year source of reinsurance protection against losses from Texas named storms and severe thunderstorms.

Coverage will be on an indemnity trigger and annual aggregate basis, attaching at $2.1 billion and running alongside other coverages including previous cat bond issues ($400 million of Alamo Re Ltd. (Series 2018-1) cat bonds and $200 million of Alamo Re Ltd. (Series 2019-1) cat bonds) and traditional reinsurance up to an exhaustion of the layer at $4.2 billion, as documented in the layer chart we published last week.

As a result, we’re told the new Alamo Re II Series 2020-1 Class A notes will have an initial expected loss of 1.78% and that they are being marketed to cat bond investors with coupon price guidance in a range from 5.25% to 5.75%.

For comparison, last year’s Alamo Re 2019-1 cat bond had an initial expected loss of 1.8% and priced at 4.5%, meaning this new cat bond from TWIA is offering 17% better pricing even at the low-end of guidance, 22% better at the mid-point and 28% at the top-end of that guidance.

———————————————————————
Artemis Live - ILS and reinsurance video interviews and podcastView all of our Artemis Live video interviews and subscribe to our podcast.

All of our Artemis Live insurance-linked securities (ILS), catastrophe bonds and reinsurance video content and video interviews can be accessed online.

Our Artemis Live podcast can be subscribed to using the typical podcast services providers, including Apple, Google, Spotify and more.

Print Friendly, PDF & Email

« Go back to the Catastrophe Bond Deal Directory

Help us keep this valuable resource up to date. If you have information on a catastrophe bond or insurance-linked security deal we have not covered or can see something that we should change, please contact us to let us know.