Standard & Poor's gives ratings of BB- and B-

The revival of the cat bond sector continued with the issue of a $120m three-year bond for Flagstone Re. Goldman Sachs and Aon Benfield were joint bond underwriters and Risk Management Solutions was the modelling agency. The vehicle is Montana Re, registered in the Cayman Islands.

The bond covers US hurricane and earthquake risk, and its two tranches are rated BB- and B- by Standard & Poor’s.

“A strong issuance pipeline and increased financial market stability have led to a consensus estimate of approximately $3bn-$4bn for full-year issuances,” Guy Carpenter’s chairman of global client development, David Priebe, said.

Meanwhile, Swiss Re has announced a $75m five-year life securitisation. The vehicle is Vita Capital IV Ltd, registered in the Cayman Islands. It covers severe population mortality. At press time, Swiss Re closed a $150m cat bond, Successor X, which gives one-year cover for North Atlantic and European wind and California quake.