Montoya Re Ltd. (Series 2022-1)
It is the first catastrophe bond to be sponsored by specialist insurer and reinsurer Inigo Insurance, with the ultimate beneficiary of reinsurance protection being Lloyd’s Syndicate 1301 carriers.
Inigo Insurance entered the catastrophe bond market for the first time looking for reinsurance protection based on the industry’s loss trigger to cover potential aggregations of losses across multiple international exposures to areas of maximum risk.
Sources told Artemis that Inigo Insurance has registered a special purpose insurer in Bermuda named Montoya Re Ltd. for the purpose of issuing catastrophe bonds.
For its first issue, Montoya Re Ltd. seeks to issue and sell to investors $105 million or more of Series 2022-1 Class A Notes.
The ticket sales guarantee will underpin the retro reinsurance agreements between SPI Montoya Re and Inigo’s Syndicate 1301 at Lloyd’s, we understand, with the syndicate being the ultimate beneficiary of the cover.
We are told that the $105 million or more tranche of Series 2022-1 Class A Notes issued by Montoya Re Ltd. is designed to provide Inigo Syndicate 1301 approximately three years of protection until the end of March 2025.
The cover will cover the main risks of named storm in the United States, earthquake in the United States and Canada, earthquake in Japan and typhoon in Japan.
The catastrophe bond will feature a PCS industry loss index trigger, with hedging on a global annual basis, we are told.
Class A Notes have an initial attachment probability of 3.37%, an initial expected loss of 1.52% and are marketed to investors with coupon price indications within a range of 5 .5% to 6.25%, according to our information.