Swiss Reinsurance America Corp. has returned to the cat bond market to issue the third deal this year involving Swiss Re. Parkton Reinsurance Ltd. is a Cayman Islands special purpose vehicle set up to issue a $125m bond on behalf of two North Carolina nonprofit insurance associations (the North Carolina Joint Underwriting Association and the North Carolina Insurance Underwriting Association).
Parkton Re has been issued to provide the two nonprofits with $125m of reinsurance protection against hurricane losses in North Carolina and the Barrier Islands until 6th May 2011. The bond will simply be triggered if storm losses experienced by members of the NCJUA and NCIUA exceed a set amount during the next two years.
Standard and Poor’s have rated Parkton Re Ltd’s. Series 2009-1 notes B+.
We’ll bring you more details as we get them. As ever you can read every cat bond deal since 1994 in the Artemis Deal Directory.