US primary insurance giant State Farm has returned to the catastrophe bond market and secured $500 million of US property catastrophe reinsurance protection from two series of Merna Re II cat bond notes, with a $200 million Merna Re II Ltd. (Series 2022-2) and $300 million Merna Re II Ltd. (Series 2022-3) issuances.
State Farm continues to put the capital markets at the heart of its catastrophe reinsurance arrangements, typically bringing at least one new catastrophe bond to market each year.
Often these transactions have a US earthquake focus, typically California or New Madrid quake region perils, but it has also been known to seek Florida named storm reinsurance from the capital markets through its Merna Re series of cat bond deals.
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