Vantage sponsors its first 144A index-triggered cat bond
Vantage Risk, the recently launched Bermuda reinsurance company, has sponsored its first 144A index-triggered catastrophe bond transaction.
The bond was issued by Bermuda special purpose insurer Vista Re and will provide Vantage with multi-year risk transfer capacity on an indexed basis to protect against the aggregation of US named storm and North American earthquake risk.
Vista Re issued $225 million of series 2021-1 class A principal at-risk variable rate notes, upsized from its initial $150 million target. The designated risk period runs from May 15, 2021 to May 14, 2024.
Vista Re follows the launch of AdVantage Retro I, a collateralised reinsurer established by Vantage in December 2020, which allows investors to partner with Vantage to access selected reinsurance risks.
Chris McKeown, Vantage Group’s chief executive of reinsurance, said the trade provides Vantage with complementary capital support and expands its profile among ILS investors. “We intend to continue developing this partnership capital model, building it over time in a strategic way that aligns the interests of our shareholders with valued partnership capital and the broader investor market,” he said.
Aurora Swithenbank, chief financial officer at Vantage Group, highlighted the strong investor demand that had allowed it to increase the size of the deal by 50 percent.
GC Securities acted as sole structuring agent and sole bookrunner, while Sidley Austin acted as deal counsel. The cat bonds were priced on April 26, 2021 and closed on May 4, 2021.
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