Louisiana Pelican IV Re 2018 $ 100 Million Citizens Track Cat Bond Price Trend (Down)


Louisiana Citizens Property Insurance Corporation’s latest catastrophe bond is expected to follow the market trend in 2018, as price expectations are reduced, falling below the initial market range for its $ 100 million Pelican IV Re Ltd cat bond . (Series 2018-1).

Louisiana Citizens recently returned to the catastrophic bond market in search of what will be its primary source of guaranteed reinsurance in the catastrophic bond market.

For the property insurer of last resort, this is its fifth cat bond and the Pelican IV Re 2018-1 deal, while the expansion of reinsurance coverage Louisiana Citizens receives from the capital markets is expected. also do it at very attractive prices.

Louisiana Citizens’ Special Purpose Insurer (SPI), Pelican IV Re Ltd., is set to issue a one-time $ 100 million tranche of Class A Series 2018-1 notes, which will provide to the promoter a reinsurance protection against losses due to storms named Louisiana (therefore tropical storms and hurricanes) and also severe thunderstorms in Louisiana, over a period of three years per event and using an indemnity trigger.

Previous catastrophic Louisiana citizens’ bonds covered only named storm risks, so it’s encouraging to see the insurer this time around to the capital markets for a more holistic layer of protection.

The $ 100 million one-time tranche of Series 2018-1 Class A Notes, which have an expected initial loss of 0.97%, was released to investors with a coupon price forecast of 2.25% at 2 , 75%.

But now, following the trend of almost every catastrophe bond launched this year, the 2018 Pelican Re IV Notes are expected to go down, we understand, with the coupon forecast now lowered below the original range, between 2% and 2.25%. .

This is further evidence of the financial markets appetite for catastrophe risk in securitized form today, which should continue to generate sustained issuance through the remainder of the quarter and provide effective execution to sponsors seeking reinsurance or retrocession on capital markets.

You can find out all about Pelican IV Re Ltd. Category Bond. (Series 2018-1) and all other Catastrophe bond transactions since the inception of the market in the Artemis Deal Directory.

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