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American Integrity’s 2019 cat bond extended on continued exposure to Ian


The $50 million of Integrity Re Ltd. (Series 2019-1)  catastrophe bond notes sponsored by US primary insurer American Integrity have now had their maturity date extended out, as they continue to have potential exposure to the ongoing development of losses from last year’s hurricane Ian.

american-integrity-logoAmerican Integrity’s outstanding cat bonds were broadly marked-down after major hurricane Ian struck Florida in September 2022.

The most at-risk are the the $150 million Integrity Re II Pte. Ltd. (Series 2020-1) issuance and these notes had already had their maturity date pushed out to April 2028 on the threat of hurricane Ian losses.

Those Integrity Re 2022 cat bond notes remain the most marked-down in the secondary market, with some cat bond trading desks discounting their price by as much as 50% still.

The $50 million of Integrity Re 2019-1 cat bond notes had been scheduled for maturity in June 2023, but we’re now told that these have also had a long maturity extension applied, to June 2028.

At one stage, these Integrity Re 2019 cat bond notes had been marked down by roughly 90%, straight after hurricane Ian’s landfall, as had all of American Integrity’s outstanding cat bonds at the time.

But the price of the 2019 cat bond notes then recovered, to be marked around 50% discounted by November 2022 and that recovery had continued, as was seen with many other cat bonds post-Ian, so in recent weeks these Integrity Re 2019-1 cat bond notes were marked for bids of between 70 and 90, depending on the broker sheet you looked at.

Because of this, American Integrity has opted to extend the maturity for the 2019 Integrity Re notes by five years, to ensure the collateral is available should its ultimate losses from hurricane Ian reach their attachment point.

The $75 million Integrity Re Ltd. (Series 2022-1) cat bond notes are also still marked down, but only by around 10 cents at this time.

The long extension through to 2028 that American Integrity has opted for with now two of its Integrity Re cat bonds, means their reinsurance protection will remain available to it as the hurricane Ian loss quantum continues to settle.

You can view details of many catastrophe bonds that have been triggered and made payouts, as well as cat bonds currently considered at-risk, in our Deal Directory.

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