Recently launched Bermudian reinsurer Vantage Risk has sponsored its first 144A index-triggered catastrophe bond transaction, Vista Re Ltd.
Vista Re Ltd. will provide Vantage with multi-year risk transfer capacity on an indexed basis to protect against the aggregation of US named storm and North American earthquake risk.
The bond was upsized from its initial $150 million target and issued $225 million of Series 2021-1 Class A principal at-risk variable rate notes.
The designated risk period runs from May 15, 2021 to May 14, 2024, while the cat bonds were priced on April 26, 2021 and closed on May 4, 2021.
“This transaction provides Vantage with complementary capital support as we build our risk portfolio,” said Chris McKeown, Vantage Group’s Chief Executive of Reinsurance.
“Additionally, it expands the Vantage profile among ILS investors and allows investors to grow their risk portfolios alongside Vantage.
“We intend to continue developing this Partnership Capital model, building it over time in a strategic way that aligns the interests of our shareholders with valued partnership capital and the broader investor market.”
Aurora Swithenbank, Vantage Group CFO, added, “We are very pleased with the reception to Vista Re’s inaugural cat bond offering, with strong investor demand allowing for a 50% upsize from the initial announced transaction size while simultaneously pricing below initial price guidance.”
