Swiss Re Insurance-Linked Fund Management

Xactanalysis Insights and PCS

Brit Insurance catastrophe bond Fremantle Ltd upgraded


Brit Insurance Ltd’s catastrophe bond Fremantle Ltd. has had it’s rating upgraded by Fitch Ratings today. The ClassB notes have been upgraded to ‘AA’ and the Class A and C notes have been affirmed with no rating changes.

The cat bond deal, which provided Brit with coverage against U.S. hurricanes, earthquakes, European windstorms, Japanese earthquakes and Asian typhoons, expires in 2010. The terms of the deal meant that four loss events had to occur before any loss would be born by the noteholders. The only event to date which is likely to qualify is hurricane Ike, and with only one hurricane season to go it’s becoming less likely that those other three events will happen. Currently the losses reported by Ike are below the level required to qualify but the likelihood of them increasing (as the market expects) has been taken into consideration.

The Fremantle deal was designed with this in mind, with the likelihood of loss tailing off in the latter period of the deal. Noteholders must be feeling confident that this transaction will expire without any impacts to their investments.

Full details are available at Fitch Ratings (login required). As ever, you can read more details on Fremantle Ltd. in the Artemis Deal Directory.

Register today for ILS NYC 2023, our next insurance-linked securities (ILS) market conference. Held in New York City, February 10th, 2023.

Artemis London 2022 - Insurance-linked securities conference in London

Get a ticket soon to ensure you can attend. Secure your place at the event here!

Print Friendly, PDF & Email

Artemis Newsletters and Email Alerts

Receive a regular weekly email newsletter update containing all the top news stories, deals and event information

  • This field is for validation purposes and should be left unchanged.

Receive alert notifications by email for every article from Artemis as it gets published.