Topanga Re Ltd

Artemis has learned that one tranche of the Topanga Re Ltd. (Series 2021-1) catastrophe bond that was sponsored by Farmers Insurance Group has had its maturity date extended, as qualifying losses under the aggregate reinsurance contract are now approaching the attachment point for the notes.

We’ve learned that two catastrophe bond deals that were originally scheduled for issuance in the fourth-quarter of 2022 were delayed by their respective sponsors, as both were being cautious due to the uncertain market conditions and the level of execution risk that might have presented.

According to Jean-Louis Monnier, head of retrocession & ILS structuring at Swiss Re Capital Markets, an “innovative subrogation extension mechanism” that featured in Farmers Insurance Group’s $160 million Topanga Re Ltd. (Series 2021-1) catastrophe bond issuance was welcomed by investors.

Farmers Insurance Group has now secured the slightly upsized $160 million of collateralized reinsurance protection from its first catastrophe bond, with the Topanga Re Ltd. (Series 2021-1) issuance set to provide the Zurich-linked insurer with multi-year aggregate cover across peak perils.

Farmers Insurance Group is now targeting up to $160 million of collateralized reinsurance protection from its first catastrophe bond, as the Topanga Re Ltd. (Series 2021-1) issuance grew during marketing, while its pricing was fixed at the upper-end of guidance.

Farmers Insurance Group, the US insurer that also operates across a number of reciprocal insurer brands and has links to Zurich Insurance Group, is sponsoring its first catastrophe bond, seeking at least $100 million of multi-peril US catastrophe reinsurance protection from the capital markets, with a Topanga Re Ltd. (Series 2021-1) issuance.