Galileo Re Ltd

AXA XL, the global specialty insurance and reinsurance unit of the AXA Group, is returning to the catastrophe bond market for the first time since 2017, with a new Galileo Re Ltd. (Series 2019-1) catastrophe bond transaction that seeks at least $400 million of protection, but could grow much larger.

XL Catlin and its subsidiaries latest catastrophe bond, the $150m Galileo Re Ltd. (Series 2017-1) transaction, having been the first to market following the recent hurricanes is a good test of investor appetite and while investors are keen to take on more risk the coupon shows that this is not at any cost.

XL Catlin and its subsidiaries are the first sponsor to return to the catastrophe bond market after the recent hurricane losses, according to sources, launching a $150 million Galileo Re Ltd. (Series 2017-1) transaction with pricing that looks a little higher than other recent similar multi-peril cat bond issues.

One of XL Catlin’s outstanding catastrophe bonds, the $300 million Galileo Re Ltd. (Series 2015-1), has been heavily discounted in trading by investors, as they look on the transaction as one of those deemed most at risk of loss due to the combined impacts of hurricane Harvey and Irma.

The structuring of the recent $300 million Galileo Re Ltd. (Series 2016-1) international multi-peril catastrophe bond, sponsored by XL Insurance (Bermuda) Ltd. helped to facilitate investor demand, according to GC Securities Cory Anger.

ILS investors subscribing to allocate capital to the $300m Galileo Re Ltd. (Series 2016-1) international multi-peril catastrophe bond issuance from XL have given a clear signal that the appetite for higher-yielding notes is strong.

In a clear demonstration of investor appetite for higher-yielding catastrophe bond notes, the price guidance on all three tranches of the $300m Galileo Re Ltd. (Series 2016-1) international multi-peril cat bond issuance from XL has dropped to below the lower-end of the initial range.

The first catastrophe bond to be launched to the ILS investor market in 2016 is a $300 million or greater Galileo Re Ltd. (Series 2016-1) international multi-peril issuance which is being sponsored by XL Insurance (Bermuda) Ltd.

Insurance and reinsurance group Catlin has completed its latest catastrophe bond transaction, Galileo Re Ltd. (Series 2015-1), upsizing the transaction by 50% to close it securing $300m of protection for a variety of natural perils.

Catlin Group has returned to the catastrophe bond market to seek at least $200m of reinsurance cover with the issue of Galileo Re Ltd. (Series 2015-1). Interesting the deal covers a significantly higher level of risk than the firms last cat bond.