Alpha Wind 2000-A Ltd. – Full details:
These hurricane cat bond securities provide $90 million of retrocessional coverage to Arrow Re. Arrow Re has reinsured a $100 million portion of an excess-of-loss treaty covering State Farm policies, primarily homeowners, in Florida. This securitization represents a 90% cession of that risk to the holders of the securities.
The securities have been rated ‘BB+’ by Standard & Poor’s.
The deal covers State Farm from certain insured hurricane losses in Florida.
The notes attach at $3.8 billion, roughly a 1 in 100 year loss level. The exhaustion point is a single event loss of approximately $5.7 billion, which RMS estimated to be slightly beyond the 250 year return period loss level.