Hamilton lifts Easton Re cat bond renewal target to $200m at lower pricing

Hamilton, the Bermuda based insurance and reinsurance holding company, has lifted its target for its second ever catastrophe bond issuance, now seeking $200 million in collateralized multi-peril retrocessional reinsurance from the Easton Re Ltd. (Series 2024-1) transaction.

At the same time, we’re told the price guidance has been lowered, with a chance the notes now price below the initial guidance.

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

Now, the target has risen in response to investor demand, with a $200 million tranche of notes now expected to be issued by the Easton Re Ltd. vehicle.

As a result, Hamilton could benefit from $200 million of retrocessional coverage against losses from U.S., DC, Puerto Rico, and Virgin Islands named storms, as well as U.S. and Canada earthquakes, on an industry loss trigger and per-occurrence basis, over a three year term, through calendar years 2024 to 2026, we’re now told.

The now $200 million of Class A notes come with an initial expected loss of 2.65% and were first offered to cat bond investors with spread price guidance in a range from 8% to 8.75%.

We’re now told that the spread price guidance has been lowered to between 7.5% and 8%, so offering Hamilton a chance of pricing the new Easton Re cat bond below guidance.

Which would be a strong result for the company and also expand on its soon to mature $150 million Easton Re Pte. Ltd. cat bond.

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