Allied World Assurance Company (AWAC) has efficiently priced its latest disaster bond, securing the upsized goal for $275 million of reinsurance safety from its 2001 CAT Re Ltd. (Series 2023-1) renewal transaction, whereas the unfold was priced roughly 14% under the mid-point of preliminary steering.
Allied World’s urge for food elevated, with this cat bond providing up to date to pitch the issuance to supply $275 million of capital markets backed retrocessional reinsurance protection for the corporate, whereas on the similar time the value steering was lowered.
Now, we’re advised that the 2001 CAT Re 2023-1 cat bond issuance has been priced and Allied World has secured the $275 million raised goal, whereas on the similar time the unfold has been fastened on the backside of already decreased worth steering.
Which signifies that particular goal insurer 2001 CAT Re Ltd. will problem a single $275 million tranche of Class A Series 2023-1 notes.
The notes will present Allied World and subsidiaries with fully-collateralized reinsurance safety in opposition to sure losses from U.S named storms, U.S. and Canada earthquakes, and European windstorm dangers, on an industry-loss set off and per-occurrence foundation throughout three annual danger intervals from January 1st 2024.
The now confirmed as $275 million of Series 2023-1 Class A notes to be issued by 2001 CAT Re Ltd. have an preliminary anticipated lack of 5.13%.
The notes had been at first provided to cat bond traders with unfold worth steering in a spread from 14% to fifteen%, however we subsequently discovered that had been lowered and a wider vary given, with the up to date steering having been for a selection of 12.5% to 14%.
Now, we’ve been advised that the unfold has been fastened and the notes priced at 12.5%, which represents a roughly 14% decline in pricing from the preliminary steering mid-point, a robust consequence for Allied World.
Allied World had clearly labored with its companions to maximise the effectiveness of this cat bond issuance, securing a lot better than anticipated execution ultimately, with worth seemingly maybe extra necessary than the dimensions of the cat bond, given the comparatively small upsizing.
Read all about this new 2001 CAT Re Ltd. (Series 2023-1) disaster bond and greater than 950 different cat bond transactions within the Artemis Deal Directory.
