The just lately settled $125 million Charles River Re Ltd. (Series 2024-1) disaster bond is a precious addition to the reinsurance preparations that help MGU ShoreOne Insurance Managers and provider American European Insurance Company’s efforts to handle the coastal flood danger safety hole, the 2 corporations have mentioned.
In the top, the Charles River Re issuance resulted within the profitable pricing of the upsized $125 million providing of notes notes at roughly 10% under the mid-point of preliminary unfold steering, as we detailed final week.
Now the 2 firms behind the deal, and the structuring agent and bookrunner GC Securities, have commented on the primary Charles River Re disaster bond, highlighting its function in addressing a safety hole.
The pair mentioned the cat bond offers “a diversification of risk transfer capacity and access to the capital markets.”
“This catastrophe bond is another milestone in ShoreOne’s history and in its partnership with American European,” defined Cameron Rhodes, President and Chief Operating Officer of ShoreOne.
“This risk transfer protection will strengthen our ability to jointly address the coverage gap for coastal homeowners and the associated flood risk they face.”
“Our catastrophe bond is an essential part of our reinsurance structure and complements a tower backed by industry-leading reinsurers,” added Nachum Stein, CEO of American European.
“We are pleased to have successfully sponsored our first catastrophe bond, and done so in partnership with ShoreOne, our valued partner in the coastal homeowner’s market. We are grateful for the strong investor support for our collective mission.”
As detailed in our Deal Directory entry, the Charles River Re 2024-1 cat bond issuance was upsized by 25%, whereas the notes priced at a diffusion of 6.75%, some 10% under the preliminary steering mid-point.
The notes have an preliminary base anticipated lack of 1.87% and offers reinsurance based mostly on an indemnity set off over a three-year time period with scheduled maturity on May tenth, 2027.
GC Securities, a division of MMC Securities LLC and a part of reinsurance dealer Guy Carpenter, was the only real structuring agent and bookrunner for this cat bond issuance.
“We’re proud to have supported American European and ShoreOne’s inaugural catastrophe bond issuance,” Liam Martens, Senior Vice President of GC Securities acknowledged.
Adding, “We are pleased that investors strongly supported this important protection gap initiative and welcomed an MGU and its carrier partner to the catastrophe bond market for the first time in the market’s history.”
You can learn all about this new Charles River Re Ltd. (Series 2024-1) disaster bond transaction and each different cat bond ever issued in our Artemis Deal Directory.
