Spanish reinsurer has structured retrocessional protection through a catastrophe bond for the first time, to transfer US wind risk.
Mapfre Re has sponsored the issuance of a catastrophe bond for the first time in its history.
The reinsurer is sponsoring a catastrophe bond of $125m via Irish special purpose vehicle Recoletos Re DAC.
The multi-year protection running from January 2025 to December 2027.
The first issuance under this retrocession program, Series 2024-1, provides the Spanish reinsurer with protection against its catastrophic exposure to US tropical storms and hurricanes, based on reported industry losses from such events and on an annual aggregate basis.
Aon Securities was the structuring agent of the bond, working jointly on the placement with GC Securities.
Capital markets received this inaugural operation “very positively”, according to Mapfre Re.
The bond was upsized to $125m from an initial $100m, and with reduced pricing, due to strong investor demand.
“We’re very satisfied with this new protection because it enables us to expand our business in the United States and diversify our sources of reinsurance, which strengthens our position in the global market,” said Miguel Rosa (pictured), CEO of Mapfre Re.
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