US major property and casualty insurer The Hartford is concentrating on tighter pricing for its new disaster bond issuance, which is its first since 2011, whereas nonetheless aiming for $200 million of multi-peril disaster reinsurance from the Foundation Re IV Ltd. (Series 2023-1) cat bond issuance.
The insurer returned to the disaster bond market in quest of fully-collateralized peak peril disaster reinsurance safety on a multi-year foundation, earlier this month.
The Hartford is concentrating on $200 million of collateralized US named storm and earthquake reinsurance safety, throughout a 3 calendar yr time period operating the the top of 2026, on an indemnity set off and per-occurrence foundation with this Foundation Re IV 2023-1 cat bond.
This goal stays unchanged at this stage, we’re instructed, however the insurer is in search of tighter pricing.
The nonetheless $200 million of Series 2023-1 Class A notes being issued by Foundation Re IV Ltd. have an preliminary anticipated lack of 1.36% and have been at first provided to cat bond buyers with unfold value steering in a spread from 6% to six.75%.
We’re now instructed that this unfold steering has been narrowed, with a spread of 6.25% to six.5% being provided to buyers.
Which suggests pricing effectively inside the preliminary steering vary, whereas The Hartford appears on observe to safe the focused reinsurance it had been in search of from the capital markets with its first disaster bond since 2011.
You can learn all about this new Foundation Re IV Ltd. (Series 2023-1) cat bond transaction in our Deal Directory, the place you may analyse particulars of almost each disaster bond ever issued.
