Tradewynd Re Ltd

Insurance firm AIG has reset its most recent multi-peril catastrophe bond, Tradewynd Re Ltd. (Series 2014-1), at a slightly higher probability of attachment for the second risk period, resulting in a slight increase in the risk interest spread paid to investors.

The pricing on American International Group’s (AIG) latest catastrophe bond transaction, Tradewynd Re Ltd. (Series 2014-1), has settled at the mid-point of guidance on one tranche of notes and below it on the other two.

According to market sources, Tradewynd Re Ltd. (Series 2014-1), the latest catastrophe bond issuance to be sponsored by global insurance firm American International Group (AIG), has increased in size by 67% to now offer $500m of notes to investors.

Global insurance firm American International Group (AIG) is returning to the catastrophe bond market for its third Tradewynd deal, seeking at least $300m of reinsurance protection from the capital markets with Tradewynd Re Ltd. (Series 2014-1).

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 (Series 2013-2), had grown to $180m, one tranche was withdrawn and pricing tightened.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 (Series 2013-2), has seen one tranche withdrawn from the issuance, while price guidance on the other three has tightened.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.