Catastrophe bonds

The catastrophe bond will take the firm’s cover to $250mn.

The bond covers earthquakes and second-event named storms.

The cat bond is Prologis’s first entry into the cat bond market.

The final amount has upsized from the previous $100mn target.

This late in the year, where the claims land in terms of historic tornado loss parallels is almost irrelevant to the question of disruption, as the event will compound existing delays.

The spread on the deal settled in the middle of a revised, lowered range.

The US earthquake bond is from a first-time corporate sponsor.

The Netherlands reinsurer wants protection from windstorm and severe thunderstorm cat risk.

The bond in four tranches will cover named storm and earthquake risk.

1 January renewals are running late across the board as reinsurers hold out for improved terms, but the retro segment is the most challenged for capacity.

Ariel Re previously sought $150mn worth of cover from the aggregate retro deal.

The insurer said the European flooding loss did not qualify as a European windstorm for the purpose of the transaction.