Chubb’s East Lane Re V Ltd. catastrophe bond upsizes and closes

Share

The latest catastrophe bond from U.S. insurer Chubb Group has closed and priced at an upsized $150m. The fifth cat bond from Chubb, East Lane Re V Ltd. began marketing as a $125m cat bond in two Series 2012-1 tranches, seeking a source of collateralized reinsurance cover on an indemnity trigger, per-occurrence basis over a four-year risk period to protect Chubb subsidiaries against certain U.S. hurricanes and severe thunderstorms. The deal upsized by $25m during marketing to secure Chubb $150m of cover by close.

The transaction priced towards the upper end of guidance. The $75m of Class A notes didn’t upsize and priced right at the top end of the range at 9% above Treasury money market funds. The riskier Class B tranche of notes, which have a lower attachment point, upsized to $75m and priced slightly under the top of the guidance range at 10.75% above TMMF.

The cat bond notes issued by East Lane Re V will likely be rated in the next day or so and we’ll update you then.

———————————————————————
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

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.

Read previous post:
Recent tornado outbreak could cause insured losses of up to $2 billion

A couple of days ago we wrote about the higher than average incidence of tornadoes in the U.S. this year....

Close