Florida home insurer Olympus Insurance Co. announced it has expanded its risk transfer capabilities with a successful debut in the catastrophe bond market, completing its first-ever issuance through the newly established Abacab Re Ltd.
The $120 million catastrophe bond provides multi-year, capital markets-backed reinsurance protection against Florida named storms risk.
“As a Florida-focused insurer with meaningful hurricane exposure, robust and reliable reinsurance protection is fundamental to everything we do,” says Tim Stroble, CEO of Olympus Insurance. ” The catastrophe bond issued by Bermuda-domiciled Abacab Re Ltd complements Olympus’ existing traditional and statutory reinsurance protections.
Olympus said the bond initially launched at $100 million in size, with a price guidance of 7.75% to 8.50%, but strong investor demand enabling an upsizing upsizing to $120 million and price approximately 23% below the midpoint of initial pricing guidance at 6.25%.
Olympus said it is leveraging the “positive market dynamics” by expanding protection and passing savings along to customers.
The insurer, which has approximately 78,000 policies in force, has been insuring Florida homeowners since 2007.
Lockton Re Capital Markets served as sole structuring agent and joint bookrunner and Gallager Securities served as joint bookrunner for the transaction.
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