Frontline Insurance Group LLC is sponsoring Frontline Re Ltd. (series 2018-1), a $350 million catastrophe bond that will provide the company and its subsidiary, First Protective, with coverage against certain losses from U.S. named storms across a four-year term, Artemis reported.
The company's first cat bond would provide coverage for Florida, North Carolina, South Carolina and Alabama initially. Frontline Re Ltd. will issue two tranches as part of the offering.
The $250 million class A notes will have an initial attachment probability of 6.12% and an initial expected loss of 4.04%. They are being offered with coupon guidance in the range of 6.75% to 7.25%.
The $100 million class B notes will have an initial attachment probability of 10.76% and an initial expected loss of 8.13%. They are being offered to investors with coupon guidance of 11.5% to 12.25%, according to the report.
