Swiss Re Insurance-Linked Fund Management

Xactanalysis Insights and PCS

Hamilton seeks $150m of retro from Easton Re catastrophe bond

Share

Details have now come to light about the first full catastrophe bond sponsored by Hamilton, the Bermuda based insurance and reinsurance holding company, with a target of securing $150 million of retrocessional reinsurance from the Easton Re Pte. Ltd. transaction.

hamilton-logoAs we explained a week ago, Hamilton has entered the 144a catastrophe bond market and its first cat bond deal is being issued out of Singapore.

Details of this issuance have now become available and we’re told that Hamilton is looking for a three-year source of U.S. named storm and U.S. earthquake retrocessional reinsurance using its newly incorporated Easton Re Pte. Ltd. special purpose reinsurance vehicle domiciled in Singapore.

Easton Re Pte. will issue a single tranche of Series 2020-1 Class A notes that will be offered and sold to investors, with the proceeds used to collateralize retrocessional reinsurance agreements between the issuance vehicle and a range of Hamilton’s subsidiaries, including its reinsurer Hamilton Re and Lloyd’s managing agent.

Hamilton is targeting at least $150 million of retro protection from the cat bond issuance, with the coverage set to be for losses from U.S. named storms (inc. Puerto Rico, US Virgin Islands, DC) and U.S. earthquakes (inc. DC), across three years, on a state weighted industry loss and per-occurrence trigger basis.

The notes will have an initial expected loss of 1.48% at the base case, we’re told, with the coupon price guidance of the offering set in a range from 4.5% to 5%.

For Hamilton, making use of Singapore as the issuance domicile for its first full catastrophe bond transaction means the company will benefit from the ILS grant scheme, to lower the expense of issuance.

That should make the retrocessional reinsurance protection even more cost-effective for the company and enables Hamilton to bring more third-party capital into its business in a particularly efficient manner.

You can read all about this Easton Re Pte. Ltd. (Series 2020-1)  catastrophe bond transaction in our Deal Directory and we’ll update you as it comes to market and any further details emerge.

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.