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It is the insurance company’s first foray into the cat bond market.
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The Floridian carrier said reinsurance spending was up by 5%. -
There is little sign of retro demand returning after buyers cut back in January.
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New and growing carriers helped to fill out treaties as Sompo stepped back from a market that came in flatter than expected for remote risk.
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The cedant initially sought just $500mn from the deal.
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The deal adds to a $300mn bond issued by the insurer late last year.
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The transaction will be conducted through the firm’s Syndicate 1910 at Lloyd’s.
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The deal’s spread settled at 350 basis points, down 12.5% from its initial mid-point target.
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The insurer has grown the deal by more than 50%.
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The insurer is seeking occurrence cover on the latest deal after notifying investors of a recent aggregate cat bond claim.
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Investor premiums fell by 2% from the previously projected spread.
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Divergence between appetite for upper and lower layer reinsurance risk may drive some panel turnover, and disadvantage some segments.
