The second Ibis Re Ltd. catastrophe bond transaction from Assurant Inc. has now closed. The deal upsized significantly (by 50%) to $150m from the initial value of $100m that was marketed. Assurant took advantage of the demand within the marketplace to secure an increased level of cover for itself.
The transaction provides Assurant with multi-year fully collateralized reinsurance cover for some of it’s U.S. Gulf, East Coast and Hawaii windstorm exposures. Ibis Re is structured in two tranches.
Assurant President and CEO Robert B. Pollock said; “Reinsurance protection financed through the capital markets is strategically important for Assurant as it provides us fully collateralized, multi-year coverage that complements our traditional reinsurance program. We are very pleased with the results of this transaction. We expect to have completed the placement of our 2010 property catastrophe reinsurance program with reinsurers in June. As we have done in the past, we will provide details of the full 2010 program when it is completed.”
Full details of the transaction are available in our catastrophe bond Deal Directory.