Sabine Re Ltd. (Series 2024-1)

This is the first catastrophe bond for new sponsor Allied Trust Insurance Company, which is a Texas domiciled company and an admitted P&C insurer that underwrites property-related and homeowners insurance in Texas, Louisiana, North Carolina and South Carolina.

Allied Trust Insurance Company has established a new Bermuda domiciled company for its first catastrophe bond issuance, Sabine Re Ltd.

Sabine Re Ltd. will issue a single tranche of Series 2024-1 Class A cat bond notes that will be sold to investors and the proceeds used to collateralize a named storm reinsurance agreement with the sponsor, Allied Trust.

The Sabine Re 2024-1 catastrophe bond will provide Allied Trust with a three-year source of named storm reinsurance protection, covering losses in the states of Texas, North Carolina, South Carolina and Louisiana.

The named storm reinsurance protection will be on an indemnity trigger and per-occurrence basis, with maturity due at the start of April 2027, we understand.

The Class A notes issuance is currently targeted at $100 million in size, but has room to expand given at attachment point of $200 million and exhaustion at $360 million.

The notes have an initial attachment probability of 2.21%, an initial base expected loss of 1.48% and are being offered to cat bond investors with spread price guidance in a range from 8% to 8.75%, we are told.

Update 1:

Allied Trust secured the targeted $100 million of reinsurance from its debut Sabine Re 2024-1 catastrophe bond.

The notes were eventually priced to pay investors a spread of 8.25%, so within the initial price guidance.