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American Integrity the most consistent Florida cat bond sponsor: Anger


Primary insurer American Integrity Insurance Company (AIIC) has proven itself the most consistent catastrophe bond sponsor among Floridian carriers since 2017, according to Cory Anger.

florida-beach-imageHaving recently sponsored a successful fourth catastrophe bond issuance, American Integrity is the only Florida domestic market insurer to have tapped the capital markets four years in a row.

As we explained a few days ago, the Integrity Re II Pte. Ltd. (Series 2020-1) catastrophe bond settled to offer the insurer a new $150 million source of multi-year and fully collateralised reinsurance protection from the capital markets.

The cat bond will provide American Integrity with a source of reinsurance protection against Florida named storms on an indemnity trigger and per-occurrence basis across a three-year term.

It is the insurers fourth visit to the catastrophe bond market and American Integrity is the only Floridian to do so this frequently in the last four years.

“Despite current market volatility, investors recognized AIIC’s status as the most consistent cat bond sponsor among Florida insurers since 2017 with the successful closing of its Integrity Re II Pte. Ltd. Series 2020-1 Notes, completed in March 2020, which was the third 144A cat bond to utilize a Singapore-domiciled special purpose reinsurance vehicle,” explained Cory Anger, Managing Director, GC Securities.

“GC Securities has been honored to support AIIC since 2017 in expanding its capital resiliency from the effects of natural perils that can affect its policies through the efficient and flexible usage of catastrophe bonds in concert with its traditional reinsurance program,” she continued.

Accessing reinsurance capacity from the capital markets by sponsoring a catastrophe bond offers Florida-focused primary insurer American Integrity “added stability”, according to the company’s CEO.

“Entering the catastrophe bond market offers added stability for our Company, our policyholders and their homes,” explained American Integrity President and CEO, Bob Ritchie. “A hurricane is the ultimate test of our ability to fulfill our financial commitment to quickly pay claims to impacted customers, while continuing to conduct and grow our business. Our catastrophe bond provides us with an extra source of financial backing to do just that.”

For American Integrity the new catastrophe bond is a “great indicator” of its readiness for the coming hurricane season.

The Integrity Re II cat bond is a source of added protection against impacts to the insurers financial strength caused by a hurricane, sitting alongside its reinsurance program.

As the only domestic Florida insurance carrier to issue a bond in 2020, the company says this speaks to its  “solid financial footing despite Florida’s dynamic and challenging property insurance market.”

“The successful completion of American Integrity’s catastrophe bond transaction demonstrates our ongoing commitment to claims-paying capacity, surplus protection, and development a comprehensive risk management strategy to protect our company and policyholders against unforeseen events,” Ryan Hodges, American Integrity’s Vice President of Risk Management stated.

Hannover Re acted as the ceding reinsurance company for the new Integrity Re II cat bond deal and this is the first time the sponsor has taken its cat bond deal to Singapore as an issuance domicile.

But most importantly, American Integrity now has a more diversified reinsurance program, with the capital markets a growing component of it.

“As a liquid financial instrument, the new catastrophe bond adds to American Integrity’s already robust reinsurance program and will quickly and easily convert into cash for rapid claims-paying after a catastrophic storm,” the company explained.

You can read all about this new Integrity Re II Pte. Ltd. (Series 2020-1) catastrophe bond and every cat bond deal in the Artemis Deal Directory.

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