Korean Re enters cat bond market with $75m Solomon Re US multi-peril deal
Sources have it that Korean Re, a worldwide reinsurance business headquartered in Korea, is the newest debut catastrophe bond sponsor to enter the market in 2023, issuing $75 million or more for US multi-hazard catastrophic retrocessions with a Solomon Re Ltd. (series 2023) edition.
This demonstrates how appealing the cat bond market is for investors looking for reinsurance and retrocession at this time of year, as market conditions inspire yet another new sponsor to proceed with its debut cat bond deal.
According to Artemis, the Korean Reinsurance business has incorporated a Bermuda-based business, Solomon Re Ltd., to issue a series of catastrophe bonds.
Solomon Re Ltd will for the first time issue a single tranche of Series 2023-1 Class A, now worth $75 million, to investors, the proceeds of which will be utilized to achieve a retrocession agreement between the issuer and Korean Re itself.
It claimed the insurance will cover some losses from storms and earthquakes in the United States for three years, through the end of May 2026.
The Solomon Re 2023-1 Cat Note offers per-event retro coverage based on industry loss triggers to Korean Re. According to the company, coverage ranges from a matching $110 million garnishment to $285 million from reinsurance pillar Koren Res.
This signifies that Solomon Re Ltd. will issue $75 million or more of Series 2023-1 Class A Notes with a 2.22% initial seizure chance and a 0.93% initial projected loss, and that the Notes are cat bond investors. With a selection According to our sources, the suggested retail price ranges from 5.25% to 6%.
Cat bond transactions are currently stacking up, and June is shaping up to be another busy issue month.
You may learn everything there is to know about this Solomon Re Ltd. (Series 2023-1) here. In the Artemis Deal Directory, you can read about Korean Re’s cat bond as well as every cat bond deal ever issued.
