Vantage Risk Ltd. (Vantage), a recently launched Bermuda reinsurance company, and part of Vantage Group, has sponsored its first 144A index-triggered catastrophe bond transaction. Issued by Bermuda special purpose insurer Vista Re Ltd., the bonds will provide Vantage with multi-year risk transfer capacity on an indexed basis to protect against the aggregation of US named storm and North American earthquake risk.
Upsized from its initial $150 million target, Vista Re issued $225 million of Series 2021-1 Class A principal at-risk variable rate notes. The designated risk period runs from May 15, 2021 to May 14, 2024. The cat bonds were priced on April 26, 2021 and closed on May 4, 2021.
Vista Re follows the launch of AdVantage Retro I Ltd., a collateralized reinsurer established by Vantage in December 2020 which allows investors to partner with Vantage to access selected reinsurance risks.
Chris McKeown, Vantage Group’s Chief Executive of Reinsurance, added “This transaction provides Vantage with complementary capital support as we build our risk portfolio. Additionally, it expands the Vantage profile among ILS investors and allows investors to grow their risk portfolios alongside Vantage. We intend to continue developing this Partnership Capital model, building it over time in a strategic way that aligns the interests of our shareholders with valued partnership capital and the broader investor market.”
Aurora Swithenbank, Vantage Group CFO, commented “We are very pleased with the reception to Vista Re’s inaugural cat bond offering, with strong investor demand allowing for a 50% upsize from the initial announced transaction size while simultaneously pricing below initial price guidance.”
GC Securities, a division of MMC Securities LLC, acted as sole structuring agent and sole bookrunner, while Sidley Austin LLP acted as deal counsel.