Hamilton Re makes catastrophe bond debut with $60m Cerulean Re

Hamilton Re, the re/insurance platform of Bermuda-based Hamilton Insurance Group, has unveiled its first ever catastrophe bond transaction, a $60 million Cerulean Re SAC (Easton 2019-1) deal.

The reinsurer, through its Hamilton Capital Partners business unit, has sponsored its first cat bond through the issuance of the Series 2019-1 Principal At-Risk Variable Rate Notes issued by special purpose insurer Cerulean Re SAC. Guy Carpenter's GC Securities acted as arranger, sole structuring agent and placement agent.

Easton 2019-1 provides Hamilton Re with $60 million of collateralised reinsurance capacity against certain losses from US named storms and US earthquakes, across two classes of notes, on an industry loss trigger and per-occurrence basis.

“This cat bond will provide additional, diverse reinsurance protection for our portfolio, alongside our traditional reinsurance coverages, and serve to further enhance our positioning within the capital markets,” said Hamilton Re CEO Kathleen Reardon. “Successfully navigating this solution amongst broader market uncertainties is evidence of Hamilton Re’s progress in this space and further strengthens our ability to serve our clients.”