Kizuna Re III Pte. Ltd

A fortnight ago we reported that Japanese insurance group Tokio Marine was set to redeem a $150 million tranche of its Kizuna Re II Ltd. (Series 2018-1) Japan earthquake focused catastrophe bond, as the notes had not faced any loss events in the three years since their issue.

Sources have told us that Japanese insurance group Tokio Marine has opted to redeem a $150 million tranche of its Kizuna Re II Ltd. (Series 2018-1) Japan earthquake focused catastrophe bond, as the notes have not faced any loss events in the three years since their issue.

Tokio Marine & Nichido Fire Insurance Co’s fifth Kizuna Re catastrophe bond will be the latest to experience a significant drop in price during its marketing to investors, with the $150 million Kizuna Re III Pte. Ltd. (Series 2021-1) transactions pricing now fixed some 16% below the initial mid-point of guidance.

The price guidance has been lowered for Tokio Marine & Nichido Fire Insurance Co’s fifth Kizuna Re catastrophe bond, making the $150 million Kizuna Re III Pte. Ltd. (Series 2021-1) transaction the latest to see its pricing fall during marketing.

Tokio Marine & Nichido Fire Insurance Co. Ltd., the giant Japanese primary insurance group, is back in the insurance-linked securities (ILS) market seeking its fifth Kizuna Re catastrophe bond with a $150 million Kizuna Re III Pte. Ltd. (Series 2021-1) transaction that is being issued out of Singapore.