Korean Re, the worldwide reinsurance firm headquartered within the nation of its identify, is the newest debut disaster bond sponsor to enter the market in 2023, looking for $75 million or extra in US multi-peril disaster retrocession with a Solomon Re Ltd. (Sequence 2023-1) issuance.
It’s additional proof of how enticing the disaster bond market is for these looking for reinsurance and retrocession at this stage of the 12 months, with market situations encouraging yet one more new sponsor to enterprise forwards with its debut cat bond deal.
Korean Reinsurance Firm has established a Bermuda primarily based firm, Solomon Re Ltd., for the issuance of sequence of disaster bonds, sources informed Artemis.
For its first, Solomon Re Ltd. will concern a single, at the moment $75 million tranche of Sequence 2023-1 Class A notes, that will likely be offered to buyers and the proceeds used to collateralize a retrocession settlement between the issuer and Korean Re itself.
The safety will likely be in opposition to sure losses from US named storms and earthquakes, over a three-year time period to the top of Could 2026, we’re informed.
The Solomon Re 2023-1 cat bond will present Korean Re with per-occurrence retro protection, structured on an business loss set off foundation.
The protection spans a layer from an equal attachment of $110 million and exhausts at $285 million of Koren Re’s reinsurance tower, we’re informed.
That offers the $75 million or extra in Sequence 2023-1 Class A notes that Solomon Re Ltd. will concern an preliminary attachment chance of two.22%, an preliminary anticipated lack of 0.93% and the notes are being provided to cat bond buyers with unfold steerage priced in a spread from 5.25% to six%, we’ve discovered.
Cat bond offers are coming thick and quick now and already June is shaping as much as be one other robust month of issuance.
You possibly can learn all about this Solomon Re Ltd. (Sequence 2023-1) disaster bond from Korean Re and each cat bond transaction ever issued within the in depth Artemis Deal Listing.