The covered area appears similar to previous Acorn Re cat bonds, so focused on California where most of the expected loss is located, but also covering events that occur in the surrounding states of Oregon, Washington, Nevada, Utah, Idaho, Arizona, British Columbia in Canada, as well as Baja California and Sonora states in Mexico and some offshore areas of the Pacific. west coast region, backed by the capital markets. workers compensation captive, and the other reinsureds of Hannover Re, with a source of per-occurrence parametric reinsurance protection against earthquakes that strike the U.S. These notes will be sold to cat bond investors and the proceeds used to collateralize an underlying retrocessional reinsurance agreements between Acorn Re and Hannover Re, which in turn enters into a reinsurance agreement with the Kaiser Permanente captive, Oak Tree Assurance, while also with some of Hannover Re’s other reinsureds that have exposure in the parametric box.Īs a result, this $100 million or greater of Acorn Re 2023-1 cat bond notes will provide the covered parties, Kaiser Permanente via the Oak Tree Assurance Ltd. is seeking to issue a single Class A tranche of notes, currently sized at $100 million. (Series 2021-1) cat bond deal remains on-risk and providing coverage through to the end of October 2024, meaning this will be the first time coverage overlaps and therefore maturities are staggered, providing continuity of protection from the capital markets.Īcorn Re Ltd. The previous three Acorn Re deals have always seen one approaching maturity as a new cat bond has been issued.īut the still in-force $400 million Acorn Re Ltd. You can read about all of the Acorn Re series of parametric catastrophe bonds in our Deal Directory. This new currently $100 million Acorn Re 2023-1 cat bond will, like the other Acorn Re deals, also provide some additional protection to other Hannover Re reinsureds, which have exposure within the parametric earthquake box as well, should a major quake event occur. west coast focused parametric earthquake catastrophe bonds, ultimately provide reinsurance coverage to the Kaiser Permanente workers compensation captive, covering its insured exposure to earthquake risks across that region (largely centred on California). Oak Tree Assurance is a Vermont based workers compensation captive insurer that is owned by the Kaiser Permanente group of health plan companies. All of the Acorn Re parametric catastrophe bond deals have been brought to market with Hannover Re acting as the ceding reinsurance company, sitting in front of a single named ceding insurer, Oak Tree Assurance Ltd. (Series 2023-1), will be the first in this series where its coverage will overlap with an existing issuance, presumably reflecting a desire to stagger maturity of catastrophe reinsurance coverage for the beneficiaries. A new parametric earthquake catastrophe bond transaction with a $100 million initial target, named Acorn Re Ltd.
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