Allied World’s new 2001 CAT Re cat bond could upsize to $275m

Allied World Assurance Company (AWAC) is another sponsor looking to expand its initial ambitions, as the company is now seeking up to $275 million in reinsurance protection from its 2001 CAT Re Ltd. (series 2023-1) renewal operation.

Allied World returned to the cat bond market earlier this monthseeking coverage of $250 million through this new issue, which will contribute to some extent to the renewal of its soon-to-maturity issue in November 2020, an issue of $210 million 2001 CAT Re 2020-1 agreement.

It is therefore encouraging to see Allied World’s growing appetite for this cat bond which will increase its retrocessional reinsurance coverage supported by the capital markets.

2001 CAT Re Ltd. will issue a single Class A tranche of Series 2023-1 notes that will protect Allied World and its subsidiaries against certain losses due to named storms in the United States, earthquakes in the United States and Canada and storm risks of wind in Europe, based on a loss trigger for the industry and by occurrence over three annual risk periods from January 1, 2024.

The Series 2023-1 Class A Notes, now worth $275 million, will be issued by 2001 CAT Re Ltd. at 15%.

We are now told that the forecast range has narrowed and also widened, with up to $275 million worth of notes being offered at a spread of 12.5% ​​to 14%, sources said.

This suggests that Allied World is working with its partners to maximize the effectiveness of this catastrophe bond issuance, providing a lower but wider guidance range as it seeks an uptick, with best execution as its objective. , it seems.

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