Greater Bay Re Ltd. (Series 2021-1)

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

Greater Bay Re Ltd. (Series 2021-1) – At a glance:

  • Issuer: Greater Bay Re Ltd.
  • Cedent / sponsor: China Property and Casualty Reinsurance Company (China Re)
  • Placement / structuring agent/s: Aon Securities is sole structuring agent and bookrunner
  • Risk modelling / calculation agents etc: N/A
  • Risks / perils covered: China typhoon risks
  • Size: $30m
  • Trigger type: Indemnity
  • Ratings: NR
  • Date of issue: Sep 2021

Greater Bay Re Ltd. (Series 2021-1) – Full details:

This $30 million Greater Bay Re Limited Series 2021-1 catastrophe bond is the first successful issuance to use Hong Kong as a domicile.

China Property and Casualty Reinsurance Company (China Re) is the sponsor and with this arrangement the reinsurer has secured a $30 million source of reinsurance protection against Chinese typhoon risks from the capital markets.

As we explained back in June, the Greater Bay Re Limited special purpose issuance vehicle had been registered in Hong Kong and we knew at the time that the sponsor would be China Re P&C.

Greater Bay Re Limited has issued a single $30 million tranche of Series 2021-1 cat bond notes, which were structured as zero-coupon notes and sold to a small group of cat bond investors, we understand.

Aon Securities acted as the sole structuring agent and bookrunner for this issuance.

The $30 million of notes will provide China Re with a one year source of retro reinsurance protection against certain losses from Chinese typhoons, on an indemnity trigger and per-occurrence basis. Coverage includes the Greater Bay region and other areas of high exposure to typhoons, we understand.

Maturity of the notes is expected in October 2022, we’re told.

Being zero-coupon in nature, the $30 million of notes issued by Greater Bay Re were priced at 96.96 of par, we’re told, which would imply a rough coupon equivalent of 3.04%.

This is a notable achievement for Hong Kong, which has managed to get its first cat bond to market in the same year as its regulatory regime for insurance-linked securities (ILS) was completed.

Aon Securities said, “A meaningful percentage of the bond’s investors were local to Hong Kong, highlighting the regional support for insurance-linked securities (ILS) as a diversifying asset class.”

Aon Insurance Managers, the specialist insurance management unit of the broker, is manager of the Greater Bay Re Limited structure for the sponsor and also acting as one of the directors. This work was led by the Aon Insurance Managers team in Singapore, with support from Bermuda.

———————————————————————
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.