Citrus Re Ltd. (Series 2017-2)

This is Heritage Property & Casualty Insurance Company’s sixth catastrophe bond issuance under the Citrus Re name and its second of 2017, extending its U.S. named storm reinsurance protection sourced from the cat bond market.

We understand that this Citrus Re 2017-2 cat bond will provide Heritage with a source of U.S. named storm reinsurance protection, on an indemnity and per-occurrence basis.

It’s possible that Heritage saw the cat bond pricing environment as so attractive that another slice of reinsurance from the capital markets was too good an opportunity to pass up. We’re told this deal was marketed to a select group of investors, possibly those that had participated in the 2017-1 Citrus Re cat bond.

Update, February 27th 2018:

Heritage’s exposure to hurricane Irma has become a little clearer, after the insurer notified investors of its estimated amounts it can claim under this catastrophe bond.

Heritage currently hopes to claim back the full $35 million of principal associated with this Series 2017-2 issuance from Citrus Re.

Update, March 20th 2019:

The $35 million privately placed Class B tranche of the Citrus Re Ltd. (Series 2017-2) issuance, which attached at around $474 million of losses at the time of Irma, has now been matured with zero balance to the notes, suggesting it may have paid out in full for sponsor Heritage.