trending Market Intelligence /marketintelligence/en/news-insights/trending/xcdidpv9tgjgrvlis__riq2 content esgSubNav
In This List

Report: TWIA to launch $300M cat bond

Blog

Anticipate the Unknown: Does Supply Chain Disruption Lead to Increased Credit Risk?

Blog

Data Stories: Data insights to help alleviate business complexity amid geopolitical risks

Blog

Expand Your Perspective: Data & Distribution Q&A

Podcast

Street Talk | Episode 90: Banks should not wait on the Fed to put cash to work


Report: TWIA to launch $300M cat bond

Texas Windstorm Insurance Association is bringing a $300 million multiperil catastrophe bond to the market, Alamo Re Ltd. series 2018-1, Artemis reported.

TWIA will enter into a reinsurance agreement with Hannover Rück SE, which will enter into a retrocession agreement with Alamo Re Ltd. in connection with the deal. Hannover Re will act as the ceding reinsurer, according to the report.

The cat bond will provide TWIA with fully collateralized reinsurance protection for Texas named storms and Texas severe thunderstorms over a three-year term, on an annual aggregate basis using an indemnity trigger.

The attachment point of the notes will be $2.8 billion and the exhaustion point will be $4.2 billion. The cat bond will have an initial attachment probability of 2.19%, an initial expected loss of 1.65%, and a coupon price guidance of 3.5% to 4%, according to the report.