LA JOLLA, Calif., May 10, 2017 /PRNewswire/ -- Palomar Specialty Insurance Company ("Palomar") announced today that it successfully closed a $166 million 144A cat bond completed through Torrey Pines Re Ltd. Palomar entered into a multi-year reinsurance arrangement with Torrey Pines Re, a special purpose insurer established in Bermuda whereby Torrey Pines Re provides Palomar with indemnity based reinsurance covering multiple perils. The cat bond was designed to seamlessly fit into Palomar's existing traditional reinsurance program.
Torrey Pines Re issued three tranches of notes as part of the offering: $45 million of Class A Notes and $66 million of Class B Notes that both provide protection against earthquakes in the covered area as well as $55 million of Class C Notes providing protection against earthquake, named storms and severe thunderstorms in the covered area. The transaction covers a three-year risk period, features a cascading structure and allows Palomar to include business in subsequent years in a broader covered area than in the first year.
Mac Armstrong Chief Executive Officer of Palomar commented: "The transaction with Torrey Pines Re marks another important step in Palomar's development into a market leader in the catastrophe insurance space. It further strengthens Palomar's financial condition and robust reinsurance program which will ultimately benefit our customers and distribution partners."
"The cat bond not only further optimizes our risk transfer program it also diversifies our panel of reinsurance capital providers. We are thrilled to successfully complete this strategic transaction," said Heath Fisher, President.
The $166 million offering was upsized from the initial announcement size of $143 million. GC Securities, a division of MMC Securities LLC, acted as lead structurer, sole bookrunner and sole initial purchaser and TigerRisk Capital Markets & Advisory acted as co-structurer and co-manager.
About Palomar Specialty Insurance Company
Palomar (www.PalomarSpecialty.com) is a leading insurer that focuses on catastrophe-exposed residential and commercial property lines of business. Palomar's underwriting and analytical acumen allow it to concentrate on catastrophe insurance products including residential and commercial earthquake, coastal homeowners, residential hurricane and commercial business written on an "all-risk" basis. Based in La Jolla, California, the company is an admitted carrier in 23 states. Palomar has an A.M. Best financial strength rating of "A-" (Excellent).
Contact: Chris Tofalli
Chris Tofalli Public Relations, LLC
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/palomar-sponsors-torrey-pines-re-cat-bond-300455015.html
SOURCE Palomar Specialty Insurance Company