Allied Trust Insurance Company has returned to market for its second catastrophe bond sponsorship, seeking $100 million in fully-collateralized named storm reinsurance protection from the capital markets through a issuance, Artemis has learned.In March 2024, Allied Trust Insurance, a Texas domiciled company and an admitted P&C insurer that underwrites property-related and homeowners insurance in Texas, Louisiana, North Carolina and South Carolina, sponsored its debut catastrophe bond and secured $100 million of named storm reinsurance for the states it operates in with the first transaction.That first Sabine Re cat bond cover runs until next year, so it’s encouraging to now learn that the insurer is back and looking to layer on more cat bond backed reinsurance protection, to stagger maturities within its reinsurance tower.The company is again using Bermuda domiciled special purpose insurer (SPI) Sabine Re Ltd.

for its second catastrophe bond sponsorship, in a transaction that is similar to its first.Sabine Re Ltd.is offering a single tranche of Series 2026-1 Class A cat bond notes that will be sold to investors and the proceeds used to collateralize a multi-year named storm reinsurance agreement with the sponsor, Allied Trust Insurance.

Like its first cat bond, this Sabine Re 2026-1 issuance will provide Allied Trust with a three-year source of named storm reinsurance protection, covering losses in the states of Texas, North Carolina, South Carolina and Louisiana.The named storm reinsurance protection will be on an indemnity trigger and per-occurrence basis, with maturity due at the start of April 2030, we are told.$100 million of Series 2026-1 Class A notes are being offered, which are designed to cover a share of Allied Trust’s losses from an attachment point of $25 million, up to exhaustion at $150 million.

Those figures are said to be after stated reinsurance, with an effective first-event attachment being at $360 million, sources said.The Class A notes are expected to have an initial attachment probability of 1.4%, an initial base expected loss of 0.93% and are being offered to cat bond investors with price guidance for a risk interest spread in a range from 5.5% to 6.25%, we understand.For comparison, Allied Trust’s first Sabine Re 2024-1 cat bond came with an initial expected loss of 1.48% and priced to pay investors a spread of 8.25%.

It’s good to see another cat bond sponsor returning for a second issuance, as this shows Allied Trust is attracted to the multi-year nature of catastrophe bond backed reinsurance and is looking to make them an increasingly core component of its risk tower.You can read all about this new   catastrophe bond and every other cat bond transaction ever issued in the extensive Artemis Deal Directory..All of our Artemis Live insurance-linked securities (ILS), catastrophe bonds and reinsurance can be accessed online.

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