View this article online: https://www.insurancejournal.com/news/west/2021/04/05/608594.htm
La Jolla, Calif.-based Palomar Holdings Inc. announced that through its wholly-owned subsidiaries, Palomar Specialty Insurance Co. and Palomar Excess and Surplus Insurance Co., the company has successfully closed a $400 million 144A catastrophe bond completed through Torrey Pines Re Pte. Ltd.
Palomar entered into a multi-year reinsurance arrangement with Torrey Pines Re, a special purpose insurer established in Singapore, in which Torrey Pines Re provides Palomar with indemnity-based reinsurance covering earthquake events. The catastrophe bond was designed to fit into Palomar’s existing traditional catastrophe reinsurance program.
Torrey Pines Re issued two tranches of notes as part of the financing, $200 million of Class A Notes and $200 million of Class B Notes that both provide protection against earthquakes in the covered area over a three-year risk period.
The $400 million offering was upsized from the initial announcement size of $300 million. GC Securities, a division of MMC Securities LLC and TigerRisk Capital Markets & Advisory acted as joint structuring agents and joint bookrunners; MMC Securities LLC acted as the sole initial purchaser.