Swiss Re Insurance-Linked Fund Management

PCS - Emerging Risks, New Opportunities

Easton Re 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.


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

  • Issuer: Easton Re Pte. Ltd.
  • Cedent / sponsor: Hamilton Re
  • Placement / structuring agent/s: GC Securities is sole structuring agent and bookrunner
  • Risk modelling / calculation agents etc: AIR Worldwide
  • Risks / perils covered: U.S. named storm, U.S. earthquake
  • Size: $150m
  • Trigger type: Industry loss index
  • Ratings: NR
  • Date of issue: Dec 2020

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

This will be Hamilton Insurance Group’s first full Rule 144a catastrophe bond and the company has chosen Singapore as the issuance domicile.

Hamilton had registered a special purpose reinsurance vehicle named Easton Re Pte. Ltd. on November 27th 2020.

We understand the eventual issuance from this vehicle will be a multi-year, multi-peril, possibly U.S. wind and quake focused catastrophe bond, which we presume will feature an industry loss trigger, like the firms previous Easton private cat bond.

We believe the beneficiary will be Hamilton’s reinsurance arm Hamilton Re, so the Easton Re Pte. Ltd. Series 2020-1 catastrophe bond will provide it with multi-year retrocession from the capital markets.

Easton Re Pte. will issue a single tranche of Series 2020-1 Class A notes that will be offered and sold to investors, with the proceeds used to collateralize retrocessional reinsurance agreements between the issuance vehicle and a range of Hamilton’s subsidiaries, including its reinsurer Hamilton Re and Lloyd’s managing agent.

Hamilton is targeting at least $150 million of retro protection from the cat bond issuance, with the coverage set to be for losses from U.S. named storms (inc. Puerto Rico, US Virgin Islands, DC) and U.S. earthquakes (inc. DC), across three years, on a state weighted industry loss and per-occurrence trigger basis.

The notes will have an initial expected loss of 1.48% at the base case, we’re told, with the coupon price guidance of the offering set in a range from 4.5% to 5%.

Update 1:

Strong appetite from investors looks set to make the pricing drop for Hamilton’s first full cat bond sponsorship.

The price guidance has been lowered to 4% to 4.5%, so below the initial guidance and indicating a roughly 11% decline in price if it settles at the new mid-point (compared to the original mid-point).

Update 2:

Pricing was eventually fixed at 4%, so the low-end of already reduced guidance and representing a roughly 16% drop in price from the original mid-point. The issuance was not upsized and remained at $150m.

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.