Catastrophe bonds

The European cat bond will settle at the low end of the insurer’s scaled-back target.

Spreads on the deal’s two reinsurance layers will be at the upper and lower end of coupons Allstate has offered on the cat bond market.

The French carrier is now looking to raise EUR150mn-EUR190mn from the new ILS issuance, after launching with a possible EUR200mn target.

The carrier is looking to raise annual aggregate protection from the new ILS deal.

The mortality cat bond will again include Covid-19 cover, as was the case with the debut issuance last year.

The cat bond market has priced a $20mn tranche of Safepoint’s 2019 Manatee Re cat bond for a full loss after Hurricane Ida as two regional, low-attaching deals are set to be impacted by the 2021 hurricane.

Louisiana Citizens Property Insurance had booked $439mn in Hurricane Ida losses by 30 September, implying the disaster will nearly wipe out five of its six traditional reinsurance layers and two cat bond tranches, according to Q3 financials updated on its website this month.

Farmers Insurance Group is set to sponsor its first catastrophe bond in a two-tranche deal that would provide cover for losses from named storms, severe weather, wildfires and earthquakes, Trading Risk understands.

Google’s parent is seeking cover at a tighter price from investors for its third ILS transaction.

Allstate is offering its second Sanders Re catastrophe bond for the year, sized at $350mn across two tranches of notes, in its first ILS transaction with an element of aggregate risk since making a major claim earlier this year.