The bond, which has been issued via Sussex Capital UK PCC Limited, will provide $300 million of multi-year named storm and earthquake protection for a risk period of four years to 31 December 2024. Structured on an annual aggregate state weighted basis, the proceeds from the bond will be used to collateralize a reinsurance agreement with Brit Syndicates Limited, acting on behalf of its Lloyd’s syndicate 2987.
This issuance is the first time a protected cell of a UK domiciled multi-arrangement risk transformation vehicle has issued a 144A cat bond. The bond received a strong response from the ILS investor community, which enabled Brit to upsize the transaction and build a strong panel of investors.
Matthew Wilson, Group CEO, commented: “We are delighted to have had such a positive reception to our debut bond enabling us to upsize and bring a larger transaction to market. Issuing from the UK was important to us as we further develop our Sussex UK platform and I would like to thank the PRA for their responsiveness and proactive assistance.”
Mark Allan, Group CFO, added: “Broadening our ILS relationships through the issuance of this bond is a natural progression of Brit’s third party capital strategy and will further support our growth ambitions as we look to capitalise on the opportunities available in the current market environment.”
The cat bond was priced on 7 December 2020 and closed on 14 December 2020. GC Securities acted as Sole Structuring Agent and Bookrunner, with Clifford Chance acting as Legal Counsel.