Hamilton Insurance Group has elected to issue its first catastrophe bond in Singapore.
The $150 million deal will protect Hamilton’s operating platforms against named storm and earthquake risk in the US.
The cat bond was issued by Easton Re, a special purpose vehicle in Singapore. The 144A industry loss index-triggered catastrophe bond is also the first index-based transaction approved for issuance by the Monetary Authority of Singapore.
The risk period for Easton Re will run from January 1, 2021 to December 31, 2023.
Tony Ursano, group chief financial officer at Hamilton, said: “That we were able to attract significant investor interest and to execute the transaction at highly competitive pricing well below initial market guidance, underscores our position as a growing and respected global specialty insurance and reinsurance carrier, focused on becoming a best in class underwriter."
Hanni Ali, senior vice president for strategic partnerships, added: "This transaction, together with the recent launch of Ada Capital Management Limited, underwriting on behalf of Ada Re, a Bermuda-registered special purpose insurer, illustrates how we are gaining momentum in our ILS strategy. We aim to build a significant third-party capital management platform through the continued development of partnerships with institutional investors across the globe."
GC Securities acted as sole structuring agent and sole bookrunner. Sidley Austin acted as deal counsel.
Hamilton Insurance Group, Monetary Authority of Singapore, Hanni Ali, Tony Ursano, GC Securities, Sidley Austin, Easton Re