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Chubb’s East Lane Re bond is the third cyber cat bond in 144A form to enter the market. -
The amount offered in Class A and B notes has also expanded slightly.
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The $75mn Long Walk Re deal secured broad market support from ILS investors.
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Research by Kepler Absolute Hedge showed that seven out of the 10 best-performing alt credit funds were cat bond strategies.
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The Zurich-based ILS manager has grown the fund by around 167% from $150mn as of mid-2021.
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The bond is being issued via the Lloyd’s London Bridge 2 PCC Limited structure.
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A new pooling structure allowed the firm to free up historic side pockets and provides a template for future exit options.
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The pricing is up from an initial spread of 6.75%-7.5% and an updated spread of 7.25%-7.5%.
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SafePoint and Cajun had initially sought $150mn of coverage for named storm events in Florida and Louisiana
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The new issuance is offered with pricing guidance at 2.5x the expected loss.
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All 50 US states and the District of Columbia are covered by the bond.
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The bond will provide coverage for windstorms and severe thunderstorms on a per-occurrence basis in Belgium and the Netherlands.
