Ibis Re offers US wind cover with two tranches rated at BB and BB-.

A $150m cat bond is in the market for US insurer Assurant, via Goldman Sachs.

It is Assurant's first cat bond, showing that the cat bond market remains attractive to new sponsors.

The bond is to be issued by Ibis Re, a special-purpose vehicle set up on the Cayman Islands for Assurant. Ibis Re is a Class B insurer in the Cayman Islands.

The bond offers US wind cover for subsidiaries of Assurant including American Security Insurance Co and American Bankers Insurance Co. The trigger for estimating covered losses to Ibis Re is based on the sum of PCS insured personal property losses per state multiplied by pre-determined state payout factors.

According to reports, pricing is expected to be Libor plus 9.5 to 10.5 percent for the A tranche, and Libor plus 13.75 percent to 14.75 percent for the B tranche. Each tranche is $75m. Credit rating agency Standard & Poor's has assigned preliminary BB and BB- ratings to the two tranches.