Brit launches $300m debut cat bond using UK vehicle Sussex Capital

Specialty re/insurer Brit has sponsored its debut 144A catastrophe bond issuance, Sussex Capital UK (Series 2020-1).

The bond will provide $300 million of multi-year named storm and earthquake protection for a risk period of four years to December 31, 2024.

Structured on an annual aggregate state weighted basis, the proceeds from the bond will be used to collateralise a reinsurance agreement with Brit Syndicates, acting on behalf of its Lloyd’s syndicate 2987.

This issuance is the first time a protected cell of a UK domiciled multi-arrangement risk transformation vehicle has issued a 144A cat bond.

The bond enables Brit to upsize the transaction and build a strong panel of ILS investors.

The cat bond was priced on December 7 and closed on December 14, 2020. GC Securities acted as sole structuring agent and bookrunner, with Clifford Chance acted as legal counsel.

Matthew Wilson, group CEO of Brit, said: “We are delighted to have had such a positive reception to our debut bond enabling us to upsize and bring a larger transaction to market. Issuing from the UK was important to us as we further develop our Sussex UK platform and I would like to thank the PRA for their responsiveness and proactive assistance.”

Mark Allan, group CFO, added: “Broadening our ILS relationships through the issuance of this bond is a natural progression of Brit’s third party capital strategy and will further support our growth ambitions as we look to capitalise on the opportunities available in the current market environment.”