The successful issuance of its debut catastrophe bond, the C$150 million deal, helps to ensure that sponsor TD Insurance can be there for its customers “when it matters most”, President and CEO James Russell has said.As we’d been reporting over recent weeks, this first MMIFS Re catastrophe bond s,for TD Insurance and its underwriting entites is the first cat bond solely exposed to natural perils in Canada that we’ve ever analysed and tracked in our extensive Deal Directory.TD Insurance entered the market with its first cat bond sponsorship , seeking C$150 million of efficient catastrophe reinsurance protection through this MMIFS Re Ltd.issuance.

The transaction was well-received, of already reduced guidance.As a result, TD Insurance has added C$150 million in multi-year fully-collateralized catastrophe reinsurance protection from the capital markets, with the help of insurance-linked securities (ILS) funds and investors.This reinsurance protection has been structured on an indemnity trigger and per-occurrence basis, to cover the company and its underwriting subsidiaries for three-years against losses from the perils of earthquakes and severe convective storms (SCS) in Canada.

James Russell, President and CEO, TD Insurance, commented on the successful debut cat bond, “At TD Insurance, being there for our customers during their time of need remains our most important focus, and the issuance of a cat bond helps ensure we can continue to protect them when it matters most.“At a time of increasing costs, we’re always looking for ways to provide the best possible pricing to our customers, and this new bond is another tool at our disposal.” The company noted that the MMIFS Re catastrophe bond “represents the first of its kind in Canada”, also saying that it is “the first Canadian insurer to sponsor a bond solely focused on catastrophe perils in Canada, which continue to increase across the country.” GC Securities, the capital markets and ILS specialist unit of reinsurance broker Guy Carpenter, acted as sole structuring agent and joint bookrunner, alongside TD’s own TD Securities division.“We are proud to have served as joint bookrunner on this landmark catastrophe bond – the first of its kind in Canada, reflecting our commitment to delivering innovative solutions that address the evolving needs of clients and the market,” Tim Wiggan, President, and CEO of TD Securities said.

“By leveraging capital markets to support resilience against natural disasters, we are helping to pave the way for a more secure future for Canadians and our clients.” “As the first Canadian peril-focused catastrophe bond, this transaction opens the door for Canadian cedents to underwrite natural catastrophe risk with more confidence, while protecting policyholders’ interests.It marks a significant milestone in the Canadian reinsurance market,” added Peter Askew, President & CEO of Guy Carpenter Canada.You can read all about this catastrophe bond and every other cat bond ever issued in the Artemis Deal Directory..

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