Hamilton targets $150m Easton Re 2024 multi-peril cat bond renewal

Hamilton, the Bermuda based insurance and reinsurance holding company, is back in the catastrophe bond market with its second ever issuance, seeking $150 million or more in collateralized multi-peril retrocessional reinsurance from an Easton Re Ltd. (Series 2024-1) transaction.

Hamilton Insurance Group first entered the catastrophe bond market back in 2020, when it sponsored the $150 million Easton Re Pte. Ltd. cat bond out of Singapore.

For a renewal of that soon to mature cat bond, we’ve learned that Hamilton has shifted cat bond domicile to Bermuda, registering a new vehicle named Easton Re Ltd. for the purpose of issuing catastrophe bond notes.

We understand that this new Easton Re 2024-1 cat bond will provide broad retrocessional reinsurance to Hamilton Re, the group’s Lloyd’s managing agency and so syndicate 4000, as well as its Irish domiciled carrier and other entities of the group.

The target is to secure at least $150 million of collateralized retrocession from the capital markets, through Easton Re’s issuance of a single tranche of Series 2024-1 Class A notes.

The notes will be exposed to 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, we understand.

The only significant change to the coverage offered in this renewal, is the addition of Canadian quake as a covered peril, it seems.

The retro reinsurance coverage that the Easton Re 2024-1 notes provide will run across a three year term, through calendar years 2024 to 2026, with maturity slated for early January 2027, our sources said.

The targeted $150 million of Class A notes come with an initial attachment probability of 4.12%, an initial expected loss of 2.65% and are being offered to cat bond investors with spread price guidance in a range from 8% to 8.75%, we are told.

It’s encouraging to see Hamilton coming back to the cat bond market for this renewal, as it shows the company values the role the cat bond has played within its retro reinsurance arrangements.

You can read all about this Easton Re Ltd. (Series 2024-1) catastrophe bond transaction in our Deal Directory and we’ll update you as it comes to market and any further details emerge.