News by sections

News by region
Issue archives
Archive section
Emerging talent
Emerging talent profiles
Domicile guidebook
Guidebook online
Search site
Features
Interviews
Domicile profiles
Generic business image for news article Image: Shutterstock

28 May 2015
New York
Reporter Becky Butcher

Share this article





GC Securities completes tropical cyclone cat bond

GC Securities has arranged a placement catastrophe bond of Series 2015-1 Notes, with notional principal of $100 million to manage Louisiana Citizens Property Insurance Corporation's tropical cyclone risks.


The bond was placed through a newly formed Bermuda-domiciled catastrophe bond shelf programme, Pelican III Re, to benefit Louisiana Citizens Property Insurance Corporation, also known as LA Citizens.



It is also the company’s third foray into the cat bond market for tropical cyclone risks.



The cat bond is positioned alongside LA Citizens’s traditional reinsurance programme to provide per occurrence protection from tropical cyclone-related losses.



It replaces LA Citizens’s maturing catastrophe bond protection by providing three years of risk transfer protection at a 56 percent price reduction, and improved structural features, including a broader definition of named storms, the addition of a liquidity feature to advance the next 30 days of expected claims payments, and increased flexibility with respect to the annual reset option.



Steve Cottrell, CFO of LA Citizens, said: “[We were] very pleased with the investor demand for our catastrophe bond, Pelican III Re. Catastrophe bonds are an important part of our total reinsurance strategy.”



Cory Anger, global head of insurance-linked securities structuring at GC Securities, commented: “We are honoured to have brought LA Citizens back to the catastrophe bond market and delivered further reinsurance program savings for LA Citizens and its constituents.”



“The Series 2015-1 bond, as well as the Pelican III Re shelf programme, provide the latest structural features to LA Citizens.”

Subscribe advert
Advertisement
Get in touch
News
More sections
Black Knight Media