Hexagon III Re Pte. Ltd

As anticipated, the junior €53 million Hexagon III Re Pte. Ltd. (Series 2021-1) Class B tranche of notes from Covéa Group’s 2021 catastrophe bond issuance have now been marked down, as the market digests the threat posed by the insurers rising losses from November 2023’s European windstorm Ciarán.

Artemis has learned from sources that the more junior €53 million Hexagon III Re Pte. Ltd. (Series 2021-1) Class B tranche of notes from Covéa Group’s 2021 catastrophe bond issuance could potentially be facing a hit to principal, as the insurers losses from November 2023’s European windstorm Ciarán rise.

Covéa Group has now successfully priced its new Hexagon III Re Pte. Ltd. (Series 2021-1) catastrophe bond transaction, but has only managed to secure €153 million of its original €200 million target of capital market backed reinsurance from the deal.

Covéa Group, the French mutual insurance society, has had to reduce its target for the Hexagon III Re Pte. Ltd. (Series 2021-1) catastrophe bond transaction slightly, as pricing has diverged between the two tranches and the issuance is now said to be aiming to secure the company between €150 million and €190 million of reinsurance.

Covéa Group, the French mutual insurance society, is back in the catastrophe bond market with a new Hexagon III Re Pte. Ltd. (Series 2021-1) transaction targeting €200 million of reinsurance from the capital markets to cover losses from some of its peak perils and with the deal being issued out of Singapore.