Tradewynd Re Ltd. Series 2013-2

RMS, one of the world’s leading catastrophe modellers, states that it has pioneered a new approach to modeling indemnity catastrophe bonds, through its work with AIG and Swiss Re on the recently completed Tradewynd Re Ltd. (Series 2013-2) deal.

The completion on December 18th of the latest catastrophe bond from insurer AIG, Tradewynd Re Ltd. (Series 2013-2), takes the total amount of insurance-linked securities (ILS) sponsored by the insurer since 2010 to $2.375 billion.

2013 catastrophe bond issuance has passed the $7 billion milestone for the first time this year with the completion of the latest catastrophe bond from insurer AIG, Tradewynd Re Ltd. (Series 2013-2), which takes the size of the cat bond market over $20 billion.

Yesterday, we wrote that AIG’s latest catastrophe bond transaction, Tradewynd Re Ltd. (Series 2013-2), had more than doubled to $400m, while at the same time pricing appeared to have settled at the upper end of the tightened range.

Yesterday we wrote that AIG’s latest catastrophe bond transaction, Tradewynd Re Ltd. (Series 2013-2), had grown to $180m, one tranche was withdrawn and pricing tightened. Today the deal is said to have jumped in size to $400m, while pricing was set at the top of the tightened range.

AIG’s latest catastrophe bond transaction, Tradewynd Re Ltd. (Series 2013-2), has seen one tranche withdrawn from the issuance, while price guidance on the other three has tightened. This cat bond transaction is now targeting $180m across the remaining notes.

American International Group (AIG) is seeking to add to its catastrophe bond sourced reinsurance protection through the launch of a second Tradewynd Re cat bond, its sixth cat bond sponsorship in total, with Tradewynd Re Ltd. (Series 2013-2).