American Integrity Insurance Company has become the only Floridian insurer to issue a catastrophe bond as part of its overall financial portfolio.
Integrity Re II Pte. Ltd. is a $150 million cat bond, ceded by Hannover Rück SE, which provides AIIC and its policyholders with a multi-year source of financial protection against named storms that cause major damage in the state of Florida.
The insurer believes this issuance indicates the AIC’s readiness for the storm season and further protects its financial strength in the wake of catastrophic events, such as a hurricane.
“Despite current market volatility, investors recognized AIIC’s status as the most consistent cat bond sponsor among Florida insurers since 2017 with the successful closing of its Integrity Re II Pte. Ltd. Series 2020-1 Notes, completed in March 2020, which was the third 144A cat bond to utilize a Singapore-domiciled special purpose reinsurance vehicle,” said Cory Anger, Managing Director, GC Securities.
“GC Securities has been honored to support AIIC since 2017 in expanding its capital resiliency from the effects of natural perils that can affect its policies through the efficient and flexible usage of catastrophe bonds in concert with its traditional reinsurance program.”
Ryan Hodges, American Integrity’s Vice President of Risk Management, added “The successful completion of American Integrity’s catastrophe bond transaction demonstrates our ongoing commitment to claims-paying capacity, surplus protection, and development of a comprehensive risk management strategy to protect our company and policyholders against unforeseen events.”
The cat bond becomes effective on June 1, the beginning of the 2020 hurricane season.
“Entering the catastrophe bond market offers added stability for our Company, our policyholders and their homes,” says American Integrity President and CEO, Bob Ritchie.
“A hurricane is the ultimate test of our ability to fulfill our financial commitment to quickly pay claims to impacted customers, while continuing to conduct and grow our business. Our catastrophe bond provides us with an extra source of financial backing to do just that.”
