Yosemite Re Ltd. (Series 2022-1)

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

Yosemite Re Ltd. (Series 2022-1) – At a glance:

  • Issuer: Yosemite Re Ltd.
  • Cedent / sponsor: Core Specialty (StarStone)
  • Placement / structuring agent/s: GC Securities is sole structuring agent and bookrunner.
  • Risk modelling / calculation agents etc: AIR Worldwide
  • Risks / perils covered: US named storm and earthquake
  • Size: $75m
  • Trigger type: Indemnity
  • Ratings: NR
  • Date of issue: May 2022

Yosemite Re Ltd. (Series 2022-1) – Full details:

This is the first catastrophe bond to benefit companies owned by the still relatively young specialty insurance and reinsurance company Core Specialty Insurance Holdings, Inc.

The initial beneficiaries of the protection are the StarStone companies, which Core Specialty acquired from Enstar, and we’re told the ceding insurers to this first Yosemite Re Ltd. catastrophe bond are StarStone National Insurance and StarStone Specialty Insurance, while any other Core Specialty subsidiaries can be added as beneficiaries to the reinsurance the cat bond provides in future.

Yosemite Re Ltd. has been established as a new Bermuda based company, which is expected to be licensed as a special purpose insurer (SPI) for the purpose of issuing series of catastrophe bonds.

Yosemite Re Ltd. will seek to issue a single Class A tranche of Series 2022-1 notes, with an initial target size of $75 million, we understand.

The notes will provide the StarStone companies (initially) with a multi-year source of collateralized catastrophe reinsurance protection against losses from named storms and earthquakes across the United States.

The indemnity and per-occurrence based reinsurance coverage from this first Yosemite Re cat bond will run for a three year term to the end of May 2025.

Sources said the reinsurance cover under this Yosemite Re cat bond would attach at $300 million of losses to the covered companies, while exhaustion of coverage would be at $570 million of losses, leaving plenty of room for the issuance to upsize if investor appetite is conducive.

The currently $75 million of Class A Series 2022-1 notes come with an initial attachment probability of 2.32%, an initial expected loss of 1.16% and are being marketed to cat bond investors with coupon guidance in a range from 8.75% to 9.75%, we’re told.

———————————————————————
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.