White Rock Insurance (SAC) Ltd. has actually released a 6th deal in the Japanese Asagao personal parametric earthquake disaster bond series, with a smaller sized that normal $4.6 million Asagao VI deal emerging.
The vehicle is utilized as a danger change and securitisation platform for independently positioned disaster bonds and other collateralised reinsurance plans, in addition to for particular hostage and segregated account offerings for insurance coverage and reinsurance functions.
The Asagao series of parametric Japanese earthquake personal disaster bond deals very first emerged back in 2019. We’ve discovered they tend to constantly be parametric quake focused, so presume the very same of this latest deal.
The initially Asagao personal disaster bond, or cat bond lite, was released in September 2019, bringing approximately $70 countless securitised Japanese earthquake threats to financiers on a parametric trigger basis.
March 2020 saw a 2nd Asagao II personal cat bond deal released, that included an around $18.3 million (JPY 2 billion) securitisation of disaster threats.
Then in March 2021, a 3rd Asagao deal emerged, with an approximately $18.3 million Asagao III personal cat bond released, that seemed a renewal of the 2nd Asagao deal released a year previously.
Asagao IV was then released around the mid-year point of 2021, appearing like a possible renewal of the very first, being likewise JPY 7.5 billion in size and as the very first Asagao personal disaster bond was slated to grow around that time.
Most just recently, an Asagao V personal cat bond emerged a year earlier, appearing like a renewal of the 3rd, so a 2nd renewal of that layer of danger, and was likewise JPY 2 billion in size.
Now, an Asagao VI deal has actually been released, we’ve been informed by sources, however at a much smaller sized size of just JPY 600 million, which is roughly United States $4.6 million at today’s rate.
As with all of the Asagao deals up until now, we’re informed Japanese earthquake threats are the hazard that includes and it’s presumed this is once again being moved on a parametric basis, which held true with the other Asagao cat bond deals.
Aon Insurance Managers will have served as the insurance coverage supervisor for this brand-new Asagao personal ILS deal, helping with issuance of the approximately $4.6 countless Asagao VI notes utilizing the White Rock structure to position the personal insurance-linked securities (ILS) (or personal disaster bond notes) with financiers for an unidentified Japanese disaster danger exposed cedent.
We presume that Aon’s Reinsurance Solutions and most likely likewise its ILS expert system Aon Securities will have been associated with the deal too.
White Rock Insurance (SAC) Ltd. has issued the ¥ 600 million (JPY) of Principal At-Risk notes (which is roughly US $4.6m as of the issuance date), acting on behalf of its segregated account named T128 Asagao VI (which we’ve shortened to just Asagao VI for its entry in our catastrophe bond Deal Directory).
The notes have been issued through the White Rock Insurance (SAC) Ltd. ILS Note Program, which is a program for the issuance of privately placed catastrophe bonds, or other ILS arrangements, as well as their offering and sale to institutional investors.
The new Asagao VI notes are scheduled for maturity at April 28th 2024, we’re told.
It’s unclear precisely when these notes were issued, whether they fell into the first or second quarter at this stage. But being relatively small this time around, we’ve added the Asagao VI private cat bond as a first-quarter cat bond deal.
It is the smallest Asagao private cat bond to-date, which could imply the cedent behind the deals has found another source of risk capital more competitive in the current hard market environment, but wanted to keep the program going at the same time.
You can read all about this Asagao VI private insurance-linked securities (ILS) arrangement and every other catastrophe bond deal in the Artemis Deal Directory.
