Swiss Re Insurance-Linked Fund Management

PCS - Emerging Risks, New Opportunities

Caelus Re 2013 Ltd. (Series 2013-2)

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.


Caelus Re 2013 Ltd. (Series 2013-2) – At a glance:

  • Issuer: Caelus Re 2013 Ltd. (Series 2013-2)
  • Cedent / sponsor: Nationwide Mutual Insurance Co.
  • Placement / structuring agent/s: Goldman Sachs, Aon Benfield Securities., and Deutsche Bank Securities are joint bookrunners and structuring agents. BNP Paribas and GC Securities are co-managers
  • Risk modelling / calculation agents etc: AIR Worldwide
  • Risks / perils covered: U.S. hurricane, U.S. earthquake
  • Size: $320m
  • Trigger type: Indemnity
  • Ratings: NR
  • Date of issue: Apr 2013
  • Date of maturity (dd/mm/yyyy): 31/03/2017
  • Coupon / pricing yield Class A: 6.85%
  • news coverage: Articles discussing Caelus Re 2013 Ltd. (Series 2013-2) from

Caelus Re 2013 Ltd. (Series 2013-2) – Full details:

Nationwide Mutual is returning to the cat bond market shortly after successful issuance of Caelus Re 2013 Ltd. Series 2013-1 with another series of cat bond notes from the same SPI.

Caelus Re 2013 Series 2013-2 is very similar to the recent deal but features a longer term and a riskier layer of Nationwide’s reinsurance program.

The transaction seeks to provide another layer of multi-year fully collateralized U.S. hurricane and earthquake reinsurance cover to the sponsoring entities, Nationwide Mutual Insurance Co. and Nationwide Insurance Co. of Florida via a catastrophe bond issuance.

The 2013-2 cat bond issuance is seeking to sell $225m of notes to capital market investors. The notes are exposed to hurricanes across the main U.S. hurricane exposed States and earthquakes including fire following across the entire U.S. mainland. The cover that this cat bond provides is on a per-occurrence basis and the structure uses an indemnity trigger.

The term of this deal will be four years, one longer than its recent cat bond, which should enable Nationwide to lock-in currently attractive pricing for a longer duration.

This 2013-2 tranche of notes is said to be pitched with an attachment point of $1.5 billion and the exhaustion point is set where the 2013-1 notes take over at $1.9 billion, covering a pro-rata amount of losses between those points.

We’re told the Caelus Re 2013-2 notes have an initial attachment probability of 1.93% and an expected loss of 1.59%, while the recent 2013-1 cat bond saw a 1.28% attachment probability and 1.15% expected loss.

The 2013-2 notes are being marketed with a coupon range of 6.25% to 7.25%.

Update: This transaction increased in size to an offering of $320m of notes before close.

The pricing finished around the middle ground at 6.85%.

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.