trending Market Intelligence /marketintelligence/en/news-insights/trending/WoWaXGsQVkKn2O872tOWAQ2 content
Log in to other products

Login to Market Intelligence Platform

 /


Looking for more?

Contact Us
In This List

Report: Stratosphere Re cat bond launches to reinsure Nephila's tail risks

Banking Essentials Newsletter - November Edition

University Essentials | COVID-19 Economic Outlook in Banking: Rates and Long-Term Expectations: Q&A with the Experts

Estimating Credit Losses Under COVID-19 and the Post-Crisis Recovery

StreetTalk – Episode 70: Banks' Liquidity Conundrum Could Fuel M&A Activity


Report: Stratosphere Re cat bond launches to reinsure Nephila's tail risks

A catastrophe bond with an initial size of $100 million was launched to cover certain primary insurance tail risks that were underwritten by and for Nephila Capital Ltd., Artemis reported.

Bermuda-based special purpose insurer Stratosphere Re Ltd. is planning to issue a single tranche of 2020-1 class A notes that will have an initial expected loss of 0.115% and will be offered to investors with a coupon guidance range of 2.75% to 3.25%.

The notes will offer protection via an indemnity trigger on an annual aggregate basis. They will cover a range of U.S. natural catastrophe perils, including named storms, earthquakes, winter storms and severe thunderstorms.

Markel Bermuda Ltd. is the direct beneficiary and ceding reinsurance party to the Stratosphere Re Ltd. series 2020-1 deal. It will enter into reinsurance agreements with Stratosphere Re and in turn with State National, according to the report. The cat bond will also cover some of the tail risks that State National retains through its work with Nephila.

The transactions have a three-year term. To qualify for protection, loss events must be above $5 billion on an industry basis, and there should be two of these losses in a year for the notes to be eroded.