Brit has sponsored its debut 144A catastrophe bond issuance, Sussex Capital UK PCC (Series 2020-1).
The bond was issued via Sussex Capital UK PCC and provides $300 million of multi-year named storm and earthquake protection for a risk period of four years to December 31, 2024. It was structured on an annual aggregate state weighted basis.
The proceeds collateralise a reinsurance agreement with Brit Syndicates, acting on behalf of its Lloyd’s syndicate 2987. Brit said the bond had received a strong response from the ILS investor community, enabling the transaction to be upsized.
The cat bond was priced on December 7, 2020, and closed on December 14, 2020. It was the first time a protected cell of a UK domiciled multi-arrangement risk transformation vehicle has issued a 144A cat bond.
Matthew Wilson, chief executive officer at Brit, said he was delighted with the investor response. “Issuing from the UK was important to us as we further develop our Sussex UK platform,” he said.
Mark Allan, chief financial officer at Brit, 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.”
Brit, Sussex Capital UK PCC, Matthew Wilson, Mark Allan