XL Catlin plans to issue a catastrophe bond to secure $1 billion of capital markets-backed reinsurance protection, Artemis reported.

The bond will be issued in two series, with Galilei Re Ltd. Series 2016-1 expected to be issued before the end of this year and Galilei Re Ltd. Series 2017-1 to be issued in January 2017. Each series will target $500 million of reinsurance protection across five tranches of notes.

All of the 10 tranches will provide collateralized reinsurance protection to XL Catlin's insurers, reinsurers and Lloyd's of London syndicates against U.S. named storms, U.S. earthquakes, European windstorms, Australian tropical cyclones and Australian earthquakes.

The series 2016-1 tranches will provide three-year coverage, while the series 2017-1 tranches will provide coverage for four years.

XL Catlin is the global brand used by XL Group Ltd's insurance and reinsurance companies.