Vantage unveils its inaugural 144A index-triggered cat bond

Vantage Risk has sponsored its first 144A index-triggered catastrophe bond transaction, with the deal being upsized by 50 percent following strong investor demand.

Vista Re had originally targetted a $150 million deal, but ultimately issued $225 million of series 2021-1 class A principal at-risk variable rate notes, following strong investor demand. The designated risk period runs from May 15, 2021 to May 14, 2024.

The bond was issued by Bermuda special purpose insurer Vista Re. It provides 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.

Vista Re follows the launch of AdVantage Retro I, a collateralised 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, said the trade provides Vantage with complementary capital support and expands its profile among ILS investors. “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,” he said.

GC Securities acted as sole structuring agent and sole bookrunner, while Sidley Austin acted as deal counsel. The cat bonds were priced on April 26, 2021 and closed on May 4, 2021.