For Inigo, the London headquartered specialty insurance coverage and reinsurance underwriter, the completion of its new and now third disaster bond, the recent $100 million Montoya Re Ltd. (Series 2024-1) transaction, is an additional sign of the central position the multi-year cat bond program now occupies in its monetary technique.
The third Montoya Re cat bond from Inigo offers the corporate with safety in opposition to North American named storms and earthquakes, by way of a the transaction that makes use of a PCS trade loss index set off.
The coupon was finalised at 11.5% above money market fund returns, under the initially marketed vary of 12.25% to 13%.
The Montoya Re cat bond is being fronted by international reinsurance agency Hannover Re and Inigo’s Syndicate 1301 at Lloyd’s is the direct beneficiary of the capital markets backed protection.
Commenting on Inigo’s third profitable Montoya Re cat bond sponsorship, Adam Alvarez, Head of Insight mentioned, “We are more than happy to return to the disaster bond market with our third transaction which will probably be on threat till the top of March 2027.
“This issuance will bring our total amount of outstanding cat bond limit to $325m.”
Inigo had beforehand sponsored two Montoya Re disaster bonds that have been launched on April 1st and December 14th 2022, securing $225 million to cowl North American storms and earthquakes, with the primary cat bond additionally masking dangers in Japan.
You can examine all three of Inigo’s disaster bonds in our Deal Directory.
Alvarez continued to say, “ILS buyers have proven continued curiosity on this asset class and this initiative demonstrates Inigo’s dedication to discovering efficient methods to match investor urge for food with our shoppers’ threat.
“Inigo’s rolling programme of multiyear cat bond placements are now a central part of our financial strategy. This strategy provides stable, long-term capital that enables us to provide effective solutions to our clients’ evolving needs.”
With staggered maturities, the three Montoya Re disaster bonds have created a secure platform of mixture disaster reinsurance that Inigo can lean on as required and losses dictate, to assist the continued development of its underwriting portfolios.
You can learn all about this new Montoya Re Ltd. (Series 2024-1) disaster bond, the second from Inigo Insurance, as wel as particulars on each different cat bond issued in our in depth Artemis Deal Directory.
