The 3 year US wind cat bond is Longpoint Re II. More bonds in the pipeline.
Longpoint Re has two tranches ($100m Class A and $150m Class B). The Class A notes provide 3 years of cover, and the Class B four years. The risk is U.S. wind. But rather than Florida and Gulf Coast, cover is against hurricane losses in Connecticut, Maine, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, and Vermont.
More cat bonds are in the pipeline, according to sources.
Recently there has been a flurry of activity in the cat bond sector. Only recently, Swiss Re closed a $150 million cat bond, Successor X, which gives one year cover for North Atlantic and European wind and California quake.
Swiss Re also recently closed a $75 million five year life securitisation, for which Swiss Re Capital Markets was sole manager and bookrunner. The vehicle is Vita Capital IV Ltd, registered in the Cayman Islands.
And a $120 million three year bond was issued for Flagstone Re. Goldman Sachs and Aon Benfield were joint bond underwriters on that bond, Montana Re, and Risk Management Solutions was the modelling agency. Montana Re Ltd is registered in the Cayman Islands.
More cat bonds could be issued soon. “A strong issuance pipeline and increased financial market stability have led to a consensus estimate of approximately US$3 billion to US$ billion for full-year issuances,” said David Priebe, Chairman of Global Client Development, Guy Carpenter recently.