Swiss Re Insurance-Linked Fund Management

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Corporate cat bond

A corporate cat bond is a cat bond that is sponsored directly, or indirectly, by a company, corporation, or other similar entity.

Increasingly, corporations and companies are accessing the insurance-linked securities (ILS) markets directly, or indirectly with the help of reinsurance market participants, to access the capital market investor appetite for insurance risk.

Corporate cat bond sponsors typically seek protection against peak catastrophe perils through issuance of cat bonds.

A fronting reinsurer, or a captive insurance entity, are often used to interface with the issuing vehicle and act as an intermediary between the corporate sponsor and the capital markets investors, to cascade the cat bond coverage down to the corporate sponsor as insurance protection.

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Blackstone captive seeks $50m parametric quake cat bond Wrigley Re

7th June 2021

Gryphon Mutual Insurance Company, a real estate captive insurer which we understand to be owned by investment giant Blackstone, is entering the catastrophe bond market with the help of global reinsurance firm Hannover Re, with the company seeking $50 million of parametric California earthquake protection from a Wrigley Re Ltd. (Series 2021-1) transaction.

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