A re-structuring of the business and a narrowing of the gap between traditional and capital markets paved the way for Italian insurer Generali to bring its first catastrophe bond to the market. Franco Urlini and Mirko Sartori tell Intelligent ILS how they expect the first Italian bond to affect the wider market.
The first half of 2014 marked a significant milestone for the insurance-linked securities (ILS) sector as Italian insurer Generali entered the sector with the first European wind indemnity-based 144A catastrophe bond in recent years.
Lion I Re, as the bond is known, was issued through a single tranche of notes, and closed at €190 million, with investor demand driving its size up by 27 percent from the initial €150 million offering.
Delighted with the level of interest from investors, Generali—a company with roots that can be traced back to 1831—is very proud of its introductory transaction.
Generali, Lion I Re, cat bond, Franco Urlini