Hamilton Insurance Group is now aiming to upsize its new Easton Re Ltd. (Series 2027-1) catastrophe bond transaction to provide it with $300 million of collateralized multi-peril retrocession, while the price guidance on the notes has been lowered, Artemis has learned.
Hamilton Insurance Group, the Bermuda based insurance and reinsurance holding company, returned to the catastrophe bond market earlier this month with an initial target to secure $250 million of protection from this Easton Re 2027-1 offering.
The company’s $200 million Easton Re Ltd. (Series 2024-1) cat bond is scheduled to mature early next year, making this new offering appear to be a renewal of sorts and now a meaningful upsizing of that coverage.
This 2027-1 issuance is set to be the third 144A catastrophe bond offering under the Easton Re name for Hamilton’s reinsurance entity Hamilton Re, while the company has also sponsored a private cat bond prior to those deals.
We won’t repeat all the details of the cat bond in our updates on size and pricing, so be sure to visit the Deal Directory entry for more background on the transaction.
Easton Re Ltd. is now offering cat bond investors a single $300 million Class A tranche of Series 2027-1 notes, upsized from the initial $250 million, to provide Hamilton Re and Hamilton subsidiaries with industry-loss trigger and per-occurrence retro protection against U.S., DC, Puerto Rico, and Virgin Islands named storms, as well as U.S. and Canada earthquakes, over a three year term.
The now $300 million of Series 2027-1 Class A notes that Easton Re is offering come with an initial expected loss of 2.66% and were first offered to cat bond investors with spread price guidance in a range from 4.75% to 5.25%. That price guidance has now been lowered to a revised range of 4% to 4.75%, we are told.
It’s good to see Hamilton looking to build on its catastrophe bond protection even more, while the decline in pricing is no surprise given how cat bond issues have been executing of late with the market well-capitalised and fund managers having cash to deploy.
You can read all about this Easton Re Ltd. (Series 2027-1) catastrophe bond transaction in our extensive Deal Directory.
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