Bermuda-based re/insurer Hamilton has sponsored its first 144A industry loss index-triggered catastrophe bond via the issuance of Series 2020-1 Class A Principal-at-Risk Variable Rate Notes by Easton Re.
Easton Re was formed in Singapore and is the first index-based transaction approved for issuance by the country’s Monetary Authority.
The risk period for Easton Re will run from January 1, 2021 to December 31, 2023.
This transaction was completed via the company’s ILS business unit and provides Hamilton’s operating platforms with multi-year risk transfer capacity of $150 million to protect against named storm and earthquake risk in the US.
“We’re extremely pleased to announce the success of this new cat bond transaction, which is the first of its kind for Hamilton,” said Tony Ursano, Group CFO at Hamilton.
“That we were able to attract significant investor interest and to execute the transaction at highly competitive pricing well below initial market guidance, underscores our position as a growing and respected global specialty insurance and reinsurance carrier, focused on becoming a best in class underwriter.”
“This transaction, together with the recent launch of Ada Capital Management Limited, underwriting on behalf of Ada Re, Ltd., a Bermuda-registered special purpose insurer, illustrates how we are gaining momentum in our ILS strategy,” said Hanni Ali, SVP, Strategic Partnerships.
“We aim to build a significant third-party capital management platform through the continued development of partnerships with institutional investors across the globe.”
GC Securities acted as Sole Structuring Agent and Sole Bookrunner. Sidley Austin LLP acted as deal counsel.