We’ve learned that State Farm has been back in the catastrophe bond market in recent weeks and has now secured what is a record amount of reinsurance limit from the capital markets in a single visit in cat bond form, as it priced $1.55 billion of multi-peril protection via sponsorship of four Merna Re II Ltd. (Series 2025) cat bonds.
At $1.55 billion this now becomes the largest single catastrophe bond sponsorship ever seen, narrowly beating the recent Everglades from Florida Citizens.
In this case, State Farm, the US primary insurance giant, has opted to sponsor four separate Series 2025 cat bonds at once, each with a single tranche of notes, we are told. In the past State Farm has done this to keep different peril coverages in distinct series of notes, instead of using note classes to do the same.
FULL ORIGINAL PUBLICATION HERE
