Everglades Re II Ltd

Florida’s Citizens Property Insurance Corporation’s latest catastrophe bond, the Everglades Re II Ltd. (Series 2018-1) transaction, has upsized before pricing to $250 million, while the coupon has now been fixed at the low-end of initial guidance.

The latest catastrophe bond to be sponsored by Florida’s Citizens Property Insurance Corp. looks set to achieve pricing at or below the middle of initial guidance, as indications suggest that the $200 million Everglades Re II Ltd. (Series 2018-1) will tighten at the lower-end of the launch pricing.

Florida’s Citizens Property Insurance Corp. returns to the capital markets for additional reinsurance with another catastrophe bond in the Everglades Re series of transactions, Everglades Re II Ltd. (Series 2018-1).

Florida’s Citizens Property Insurance Corporation said yesterday that it expects to have to pay around $1.23 billion of insured losses for claims from Hurricane Irma, but expects to pay for this out of surplus, suggesting the coastal account has not had a big enough hit to eat into its reinsurance protection.

A whopping 42% of the limit placed for Florida’s Citizens Property Insurance Corporation’s reinsurance renewal was sourced from collateralized markets and insurance-linked securities (ILS) fund managers, as third-party capital continued to grow its share of the shrinking program.

According to sources, Florida’s Citizens Property Insurance Corporation’s latest catastrophe bond transaction, the Everglades Re II Ltd. (Series 2017-1) deal,  is set to upsize to $300 million in size before it completes.

The board of governors of Florida’s Citizens Property Insurance Corporation has approved the purchase of $1.33 billion of reinsurance coverage in its upcoming 2017 renewal, with a combination of traditional reinsurance and capital markets coverage provided by the Everglades Re II Ltd. (Series 2017-1) catastrophe bond deal.

The coupon price guidance has been lowered on Florida’s Citizens Property Insurance Corporation’s latest catastrophe bond transaction, the Everglades Re II Ltd. (Series 2017-1) deal, signalling continued strong appetite for new risk from investors despite the recent brisk issuance.

As expected, Florida’s Citizens Property Insurance Corporation is back in the catastrophe bond market, with a $250 million target for an Everglades Re II Ltd. (Series 2017-1) transaction that looks like it aims to capitalise on the ILS investment market appetite for risk, given its low launch pricing.

An optional termination notice was issued by the Everglades Re II Ltd. (Series 2015-1) catastrophe bond vehicle to its investors this week, confirming that Florida’s Citizens Property Insurance Corporation is redeeming the bond early.