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Its quota share partnerships provide the equivalent of $4.1bn of capital support based on 1-in-250-year loss scenarios. -
The insurer will also recover from its per-occurrence tower, recouping roughly $700mn of its gross losses from the winter storm.
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The Florida-based insurer will pay a 9.25% spread on the deal, 6% below the initial forecast.
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Declining listed issuance volumes could be down to a growing desire for transparency and flexibility after recent loss years.
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The insurer will pay a high-single-digit rate on line.
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The insurer priced the deal at the lower end of its target range.
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First Coast Re 2021-1 is the insurer’s fourth cat bond and set an early start to Florida renewals.
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The reinsurer’s ceded major losses were down 2% year-on-year, despite its net retained cat losses spiking by two-thirds to EUR1.6bn.
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The insurer is expanding its programme in line with underlying growth.
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The bond’s size grew 150% during the marketing process and pricing fell by 13% amid strong investor demand.
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More than $1bn came off risk in February this year.
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Pricing has also dropped below the initial range offered to investors.
