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The bond is seeking industry-loss-based annual aggregate named storm coverage. -
The targeted $275mn of coverage will benefit FEMA’s National Flood Insurance Program.
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The bond will offer stepped payouts of 30-100% depending on the scale of an event.
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Structuring agent Swiss Re Capital Markets said clean structure and transparency on exposure growth drove “impressive result”.
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Kin has ceded 97% of its $175mn expected gross loss and loss adjustment expenses from hurricanes Ian and Nicole to reinsurers, the carrier has said.
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Multiples on the transaction remain much higher than on prior Titania Re bonds.
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The carrier is aiming to raise up to $125mn of retro cover from the transaction.
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The philosophy of the Pioneer Cat Bond Fund is to avoid poor performers, not pick winners.
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The bond’s two tranches will provide cover for named storm and quake in the US, District of Columbia, Puerto Rico, the US Virgin Islands and Canada.
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The two top-performing funds in 2022 were interval funds.
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The multipliers on the A and B notes reflect the lack of losses from Hurricane Ian to FloodSmart Re bonds.
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The funds will support the country’s post-Covid recovery, including stimulating catastrophe insurance markets.
