MS Amlin syndicate targets $100m aggregate retro with Kanata Re 2026-1 cat bond

Lloyd’s syndicate 2001, which is aligned with Mitsui Sumitomo underwriting entity MS Amlin, is seeking its first catastrophe bond protection, with a $100 million target for multi-peril and multi-regional retrocession from an Arthur Re Ltd. – Kanata Re 2026-1 cat bond sponsorship, Artemis has learned.

As the name suggests, this is another industry-loss triggered catastrophe bond being issued through the Gallagher Re operated Arthur Re Ltd. platform that helps make issuance of industry-loss index trigger cat bonds more cost effective and efficient.

We’re told the ceding entity to this catastrophe bond is Lloyd’s syndicate 2001, with the coverage also set to benefit sub-syndicate 1673, both of which are managed by MS Amlin Underwriting Limited and underwrite for the MS Amlin arm of the global Mitsui Sumitomo insurance group.

We’ve not seen an Amlin entity in the catastrophe bond market since 2014, when Amlin AG sponsored the last of the Tramline Re series of deals. Since then of course, Mitsui Sumitomo Insurance acquired Amlin back in 2016.

While we have regularly seen Mitsui Sumitomo itself and entities of MS&AD Holdings sponsor cat bonds, for Japanese reinsurance protection, we have not seen MS Amlin entities linked to cat bonds, so this should be considered another first-time sponsor entrant to the catastrophe bond market.

For this cat bond issuance for the MS Amlin linked Syndicate 2001 and sub-syndicate 1673, Arthur Re Ltd. is offering what we’re told is currently targeted to be a $100 million tranche of Class A notes to investors on behalf of a segregated account named Kanata Re 2026-1.

The Kanata Re 2026-1 cat bond notes from Arthur Re are designed to provide Syndicate 2001 and sub-entities with a multi-year source of fully-collateralized multi-peril and multi-regional retrocessional reinsurance from the capital markets.

That protection will be on an annual aggregate and industry loss index trigger basis, while the covered perils and regions are U.S. named storm, U.S. and Canada earthquake and European windstorm events.

The protection is designed to run across a four-year term with four calendar year annual aggregate risk periods, we understand, from the start of 2027 to the end of 2030.

The $100 million of Kanata Re 2026-1 cat bond notes will feature franchise deductibles of $10 million for named storms, $25 million for earthquakes and $6 million for European windstorm events, we are told.

The Class A notes would attach their coverage at $600 million and exhaust their coverage at $700 million. It’s important to note we believe this is based on index values not ground-up reported industry losses.

The targeted $100 million offering of the Class A Kanata Re 2026-1 notes will come with an initial attachment probability of 3.01% and initial expected loss of 2.524%, while the price guidance is for a spread in a range from 4.5% to 5%, sources explained.

It’s good to see the MS Amlin syndicates looking for their first dedicated catastrophe bond coverage, they may have benefitted from cat bonds in the past through the group but this is the first time they are the named ceding entities.

It’s also good to see the continued traction of the Arthur Re Ltd. platform, with this now the fifth offering through the structure in just a few months.

Clearly sponsors are finding the efficient way Gallagher Re’s Arthur Re platform can help them access the capital markets for index-triggered reinsurance protection an attractive option.

You can read all about this new Arthur Re Ltd. – Kanata Re 2026-1 catastrophe bond and every other cat bond transaction in the Artemis Deal Directory.