Swiss Re Capital Markets has successfully structured the issuance of a $350 million insurance-linked security transaction by Frontline Re on behalf of Frontline Insurance, the largest for a Florida insurer since 2014.
“Swiss Re is pleased to provide support to Frontline on its debut catastrophe bond issuance,” commented Jean-Louis Monnier, Co-Head of ILS at Swiss Re Capital Markets.
It’s understood that Swiss Re CM underwrote the transaction via two classes of principal at-risk variable rate notes issued by Frontline Re.
The $250 million Class A notes and $100 million Class B notes have a four-year risk period starting July 1, 2018 and provide protection against named storms in Alabama, Florida, North Carolina and South Carolina.
The catastrophe bond transaction features a first-of-its-kind event adjusted attachment level, based on the event size rank of a named storm within an annual risk period.
“The innovative cat bond combines structural mechanics of the Florida Hurricane Catastrophe Fund (“FHCF”) as well as features of Frontline’s private reinsurance coverage and therefore seamlessly integrates with Frontline’s reinsurance program,” added Monnier.
