Sanders Re III Ltd

US primary insurer Allstate has disclosed that a heavy March catastrophe loss burden means it now anticipates making $123 million of reinsurance recoveries from its aggregate tower, whose coverage is solely provided by catastrophe bonds from the Sanders Re program.

Allstate reported a relatively low level of catastrophe losses for February, meaning qualifying losses under its aggregate Sanders Re catastrophe bonds remain a reasonable distance from attachment ponts, we are told, so with the annual risk period nearing its end these notes are now being viewed as safer, according to sources.

Artemis can report that the annual aggregate catastrophe losses applicable to US primary insurer Allstate’s outstanding catastrophe bond that features a $1m franchise deductible are now just slightly below the attachment point for the notes, suggesting the maturity will likely extend to allow for any loss development.

US primary insurer Allstate added $343 million of catastrophe losses in the month of March, taking its Q1 2024 cat loss total to $731 million, suggesting further erosion of the retention under the firm’s aggregate reinsurance cat bond coverage, although the data suggests that the tranches of notes do appear safe from actual losses.

Allstate reported a massive toll from severe weather related wind and hail events in 2023 and has booked a $36 million catastrophe reinsurance recoverable against one of its exposed Sanders Re II catastrophe bonds for the year.

US primary insurer Allstate has reported January catastrophe losses of $325 million, with the majority of this coming from just two events, suggesting the potential for further loss aggregation under its aggregate reinsurance cover from its catastrophe bonds.

US primary insurer Allstate has issued an update on qualifying catastrophe losses for its aggregate Sanders Re catastrophe bonds, with additional impacts through to the end of 2023 meaning one of the exposed tranches now sees its retention ~82% eroded, while others are eroded by between 53% and 56%, this publication has learned.

US primary insurer Allstate has reported a much lighter catastrophe loss burden for the fourth-quarter of 2023, which has served to slow down what was looking like a very rapid build-up of annual aggregate catastrophe losses across the first six months of the risk-period for its in-force catastrophe bonds.

US primary insurer Allstate has successfully secured the targeted doubling in size of its latest catastrophe bond, with the Sanders Re III Ltd. (Series 2024-1) issuance pricing to provide the carrier $400 million in catastrophe reinsurance from the capital markets.

US primary insurer Allstate has for a second time raised the target size for its latest catastrophe bond, now aiming to double the Sanders Re III Ltd. (Series 2024-1) issuance from the initial $200 million goal, to source $400 million in reinsurance from the capital markets with this deal.