TWIA unveils Alamo Re cat bond
The Texas Windstorm Insurance Association (TWIA) has returned to the insurance-linked securities (ILS) market with Alamo Re 2015-1.
TWIA will again use Hannover Re to bring the cat bond to market. In 2014, TWIA completed its first $400 million cat bond, hedging its exposure to tropical cyclone risks.
Alamo Re will seek to issue two tranches of notes on an annual aggregate basis using an indemnity trigger. The notes will be used to cover insured property losses caused by named storms within the 14 first-tier, coastal counties of Texas (and a small portion of Harris County).
The Class A notes will cover TWIA for three years, while the Class B notes will cover for four years.
Class A notes have an attachment level of $2.6 billion, and an exhaustion level of $3.2 billion. The Class B notes have an attachment level of $4 billion, and an exhaustion level of $4.8 billion.
