Inigo’s rolling multi-year cat bond program central to financial strategy: Alvarez

For Inigo, the London headquartered specialty insurance and reinsurance underwriter, the completion of its new and now third catastrophe bond, the recent $100 million Montoya Re Ltd. (Series 2024-1) transaction, is a further signal of the central role the multi-year cat bond program now occupies in its financial strategy.

As we’d reported, Inigo recently settled its third catastrophe bond to provide the targeted $100 million of retrocessional reinsurance protection from the capital markets, with pricing that was finalised some 9% below the mid-point of the initially marketed spread guidance range.

The third Montoya Re cat bond from Inigo provides the company with protection against North American named storms and earthquakes, via a the transaction that uses a PCS industry loss index trigger.

The coupon was finalised at 11.5% above money market fund returns, below the initially marketed range of 12.25% to 13%.

The Montoya Re cat bond is being fronted by global reinsurance firm Hannover Re and Inigo’s Syndicate 1301 at Lloyd’s is the direct beneficiary of the capital markets backed coverage.

Commenting on Inigo’s third successful Montoya Re cat bond sponsorship, Adam Alvarez, Head of Insight said, “We are very pleased to return to the catastrophe bond market with our third transaction which will be on risk until the end of March 2027.

“This issuance will bring our total amount of outstanding cat bond limit to $325m.”

Inigo had previously sponsored two Montoya Re catastrophe bonds that were launched on April 1st and December 14th 2022, securing $225 million to cover North American storms and earthquakes, with the first cat bond also covering risks in Japan.

You can read about all three of Inigo’s catastrophe bonds in our Deal Directory.

Alvarez continued to say, “ILS investors have shown continued interest in this asset class and this initiative demonstrates Inigo’s commitment to finding effective ways to match investor appetite with our clients’ risk.

“Inigo’s rolling programme of multiyear cat bond placements are now a central part of our financial strategy. This strategy provides stable, long-term capital that enables us to provide effective solutions to our clients’ evolving needs.”

With staggered maturities, the three Montoya Re catastrophe bonds have created a stable platform of aggregate catastrophe reinsurance that Inigo can lean on as required and losses dictate, to support the continued growth of its underwriting portfolios.

You can read all about this new Montoya Re Ltd. (Series 2024-1) catastrophe bond, the second from Inigo Insurance, as wel as details on every other cat bond issued in our extensive Artemis Deal Directory.