TD Insurance’s successful sponsorship of its second 144A catastrophe bond, the C$115 million MMIFS Re Ltd. (Series 2026-1) issuance, will help the company tackle the rising costs of natural disaster events and provide competitive pricing to its clients, James Russell, President and CEO, Senior Executive Vice President, TD Insurance has said.
As we’ve been reporting, TD Insurance successfully priced its second 144A catastrophe bond at the beginning of January, which provides the firm with annual aggregate reinsurance for multiple perils across Canada.
Initially, the company was looking to secure C$125 million in aggregate catastrophe reinsurance protection from the capital markets through this MMIFS Re cat bond deal, with the second transaction covering a broader range of perils than its first.
In a first update on this deal, it appeared that investor feedback had resulted in the size target for this MMIFS Re 2026-1 cat bond to be adjusted to between C$100 million and the original C$125 million of limit, while at the same time the price guidance for the notes was updated to a level above the initial guidance they had been offered with.
Then, as Artemis reported in early January, TD Insurance managed to successfully priced its second catastrophe bond offering, with the company settling for slightly less in reinsurance than it had initially targeted at the higher level of spread pricing.
The C$150 million MMIFS Re 2026-1 cat bond provides TD Insurance with annual aggregate and indemnity triggered reinsurance protection, that covers a wide range of perils, including named storms, earthquakes, severe convective storms (SCS), winter storms and wildfires in Canada.
As we’ve previously explained, this reinsurance protection runs across three annual risk periods, from January 9, 2026, through to the end of 2028, so over a roughly three-year term.
James Russell, President and CEO, Senior Executive Vice President, TD Insurance, expressed his satisfaction in the firm’s successful return to the cat bond market.
“Natural disasters can have devastating impacts on Canadians, their families and entire communities. Protecting our clients in their moments of need is a responsibility we take very seriously,” Russell explained.
“Through this second catastrophe bond, we’re able to help manage rising costs of these events to provide the most competitive pricing possible for our clients.”
TD Insurance was advised on the transaction by joint bookrunners TD Securities, and GC Securities, the capital markets and insurance-linked securities (ILS) specialist unit of reinsurance broker Guy Carpenter.
GC Securities also served as the sole structuring agent for the transaction.
Tim Wiggan, President and CEO, TD Securities, said: “We are proud to have served again as joint bookrunner on this second catastrophe bond to continue building resilience in communities against severe weather events.”
Adding: “We remain at the forefront of leveraging our capital markets expertise in innovative ways to evolve with client needs and to ensure reliable protection is available when it is needed most.”
As a reminder, you can read all about this MMIFS Re Ltd. (Series 2026-1) catastrophe bond and every other cat bond ever issued in the Artemis Deal Directory.
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