Hartford Fire Insurance Co. has reportedly closed its latest catastrophe bond transaction under their Foundation Re III Ltd. special purpose vehicle which is domiciled in the Cayman Islands. Bloomberg reports here that the deal closed on February 15th and secured $135m of U.S. hurricane catastrophe bond cover for Hartford and certain group companies.
The four year deal is Hartford’s second under the Foundation Re III SPV after they issued $180m of insurance-linked securities last year.
Bloomberg also reports that the deal pays 5 percentage points more than three month Treasury bills. This transaction was first marketed at a size of $100m, so Hartford has managed to upsize it. With investors actively seeking high yields and investment diversification, cat bonds seem to be a good fit for them right now and issuers seem to be taking advantage of that.
For more details on this Foundation Re II Ltd. Series 2011-1 deal please visit our catastrophe bond Deal Directory.