Easton Re cat bond execution underscores investor confidence in Hamilton: Ali

The very strong execution of Hamilton’s second catastrophe bond saw the company securing more retrocession than originally targeted, at a far better price than had originally been forecast, which SVP Strategic Partnerships Hanni Ali said “underscores investor confidence” in the firm.

This catastrophe bond was actually issued back in December 2023 for Bermuda based insurance and reinsurance holding company Hamilton Insurance Group and has been on-risk since the beginning of this year.

It saw Hamilton securing $200 million in collateralized multi-peril retrocessional reinsurance from the capital markets through this Easton Re Ltd. (Series 2024-1) transaction.

Hamilton Insurance Group returned to the catastrophe bond market at the end of November, with just a $150 million target size for the Easton Re 2024-1 cat bond.

Notably, what was initial price guidance for a spread of 8% to 8.75%, was reduced to between 7.5% and 8%, as investor demand for the cat bond notes helped Hamilton lower the cost of coverage with its second retro cat bond.

In the end, that demand helped Hamilton secure an upsized $200 million of United States and territories named storm and North American earthquake retrocession from the cat bond, while the notes priced at the bottom of that reduced guidance, with investors paid a risk spread of 7.5%.

“We are extremely pleased to announce the success of our second sponsorship of Easton Re bonds,” explained Hanni Ali, Senior Vice President, Strategic Partnerships.

He added, “Easton Re continues to be an important part of Hamilton’s strategy as a newly public company, providing meaningful protection to our operating platforms at an attractive risk adjusted cost.

“That we have secured more retrocession than initially targeted and at a better price than original guidance, underscores investor confidence in Hamilton.

“We are encouraged by the continued support and aim to further build on our relationships with ILS investors.”

Hamilton’s retro coverage from the Easton Re 2024 cat bond will run for three-years to the end of 2026.

You can read all about this Easton Re Ltd. (Series 2024-1) catastrophe bond transaction in our extensive cat bond Deal Directory.