The reinsurance arm of Bermudian firm Hamilton Insurance Group, Hamilton Re, has announced that via its Hamilton Capital Partners unit, it has sponsored its very first catastrophe bond transaction, a $60 million Easton 2019-1 deal.
Hamilton Re has sponsored its first cat bond through the issuance of the Series 2019-1 Principal At-Risk Variable Notes issued by Bermuda-based special purpose insurer Cerulean Re SAC Ltd., which is reinsurance broker Guy Carpenter’s issuance platform.
Easton Re 2019-1 provides the reinsurer with $60 million of collateralised reinsurance protection against certain losses from U.S. named storms and U.S. earthquakes, across two classes of notes, structured on an industry loss trigger on a per-occurrence basis.
Hamilton Re’s Chief Executive Officer (CEO), Kathleen Reardon, commented: “This cat bond will provide additional, diverse reinsurance protection for our portfolio, alongside our traditional reinsurance coverages, and serve to further enhance our positioning within the capital markets.
“Successfully navigating this solution amongst broader market uncertainties is evidence of Hamilton Re’s progress in this space and further strengthens our ability to serve our clients.”
The issuance of Easton Re 2019-1 is another example of a global reinsurer leveraging the capital markets for efficient, diversified reinsurance protection backed by an increasingly sophisticated investor base.
Hamilton Re notes that GC Securities acted as arranger, sole structuring agent and placement agent on the deal, with Mayer Brown LLP acting as legal counsel.
