Catlin has structured a $300 million cat bond, Galileo Re, which provides the re/insurer with fully collateralised coverage for named US storms, US and Canadian earthquakes and European windstorms for the coming three years.
The structure employs PCS and PERILS index triggers and is structured on an annual aggregate basis. The deal has grown markedly in size since inception, from an initial offering of $175 million to $300 million, reflecting strong investor interest in catastrophe risk as a diversifier.
The deal was structured by Willis Capital Markets and Advisory and is domiciled in Bermuda, which has welcomed 29 special purpose insurers since the start of 2013. Catlin joins a growing list of players establishing collateralised vehicles for the coming renewals.
Catlin, cat bond, alternative capital, ILS, Willis Capital Markets, Bermuda