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Sanders Re 2014-2 cat bond from Allstate hits $200m in size


U.S. insurer Allstate’s latest catastrophe bond issue Sanders Re Ltd. (Series 2014-2) has upsized to the top-end of the expected size range, pricing to offer $200m of notes today, sources told Artemis.

Earlier this week we wrote that the Sanders Re 2014-2 cat bond was expected to grow from the $150m it launched at to between $175m and $200m before close. Artemis understands that the cat bond has grown to the upper end of that range, so effectively an increase in size of 33% to price at an offering of $200m of notes.

The pricing has settled as expected just under the top of the launch guidance range, which was 3.5% to 4%. Sources confirmed today that the cat bond has priced with a coupon of 3.9%.

Once completed, Sanders Re 2014-2 will provide $200m of fully collateralized reinsurance protection to two Florida property market focused Allstate subsidiaries, Castle Key Insurance and Castle Key Indemnity. The protection from is for named storms, earthquakes and severe thunderstorms (so tornadoes as well) only in Florida, on a per-occurrence basis and using an indemnity trigger.

The Sanders Re Ltd. (Series 2014-2) catastrophe bond completes next week. You can read all about it in the Artemis Deal Directory.

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