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FEMA targets $325m fifth FloodSmart Re NFIP catastrophe bond

The U.S. Federal Emergency Management Agency (FEMA) is back in the catastrophe bond market again, seeking to secure at least $325 million of additional reinsurance protection for its National Flood Insurance Program (NFIP) through a FloodSmart Re Ltd. (Series 2022-1)  issuance, which will be FEMA’s fifth cat bond.

We explained back last July that FEMA was exploring the issuance of a new catastrophe bond within its 2022 fiscal year, which began October 1st and that it was also inviting pitches for a new reinsurance transformer partner.

All of the FloodSmart Re catastrophe bonds had been issued with the support of German reinsurer Hannover Re, fronting the risk for the capital markets and making it simpler for FEMA to access investors more directly for flood reinsurance to cover the NFIP’s liabilities.


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