American Coastal returns to cat bonds after 10-year break, places $200m
American Coastal insurance Company returned to the cat bond market after a ten-year hiatus, placing $200 million via Bermuda-registered unit Armor Re for protection against named storms, a market registration shows.
The three-year notes were issued by Armor Re II and are reported to be the first catastrophe bonds issued by American Coastal since 2014.
Armor Re series of cat bonds have been issued by other carriers of the United insurance group, including UPC Insurance, now in run-off.
The Class A notes were sold to investors and the proceeds used to collateralise a reinsurance agreement with American Coastal. The coupon is reported to be 10.25%.
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