Bamboo Insurance and Sutton National Announce Reinsurance Program Renewal
Bamboo Insurance, a subsidiary of White Mountains Insurance Group (NYSE: WTM), and Sutton National have announced the successful renewal of their reinsurance program. The renewal includes two key components:
1. Greengrove Re issued a $100 million catastrophe bond with a 7.75% spread and 1.44% initial base expected loss, maturing April 7th, 2028. The offering exceeded its initial $75 million target by 33%.
2. Greenshoots Re issued $70 million in preference shares for a sidecar transaction backed by institutional investors.
These transactions provide protection against fire and fire following earthquake for California homeowners' business, offering both catastrophe excess of loss and quota share capacity through capital markets. The successful placement, particularly following recent Los Angeles wildfires, demonstrates investor confidence in Bamboo's risk management approach.
Bamboo Insurance, una sussidiaria di White Mountains Insurance Group (NYSE: WTM), e Sutton National hanno annunciato il rinnovo con successo del loro programma di riassicurazione. Il rinnovo include due componenti chiave:
1. Greengrove Re ha emesso un'obbligazione catastrofale da 100 milioni di dollari con uno spread del 7,75% e una perdita iniziale attesa del 1,44%, con scadenza il 7 aprile 2028. L'offerta ha superato il suo obiettivo iniziale di 75 milioni di dollari del 33%.
2. Greenshoots Re ha emesso 70 milioni di dollari in azioni privilegiate per una transazione sidecar sostenuta da investitori istituzionali.
Queste transazioni offrono protezione contro incendi e incendi seguiti da terremoti per le attività dei proprietari di casa in California, offrendo sia capacità di eccesso di perdita catastrofica che quota parte attraverso i mercati dei capitali. Il collocamento di successo, in particolare dopo i recenti incendi boschivi di Los Angeles, dimostra la fiducia degli investitori nell'approccio di gestione del rischio di Bamboo.
Bamboo Insurance, una subsidiaria de White Mountains Insurance Group (NYSE: WTM), y Sutton National han anunciado la exitosa renovación de su programa de reaseguro. La renovación incluye dos componentes clave:
1. Greengrove Re emitió un bono catastrófico de 100 millones de dólares con un margen del 7,75% y una pérdida base esperada inicial del 1,44%, con vencimiento el 7 de abril de 2028. La oferta superó su objetivo inicial de 75 millones de dólares en un 33%.
2. Greenshoots Re emitió 70 millones de dólares en acciones preferentes para una transacción sidecar respaldada por inversores institucionales.
Estas transacciones proporcionan protección contra incendios e incendios posteriores a terremotos para las actividades de los propietarios de viviendas en California, ofreciendo tanto capacidad de exceso de pérdida catastrófica como cuota parte a través de los mercados de capitales. El exitoso placement, particularmente después de los recientes incendios forestales en Los Ángeles, demuestra la confianza de los inversores en el enfoque de gestión de riesgos de Bamboo.
대나무 보험은 White Mountains Insurance Group (NYSE: WTM)의 자회사이며, Sutton National와 함께 재보험 프로그램의 성공적인 갱신을 발표했습니다. 갱신에는 두 가지 주요 요소가 포함됩니다:
1. Greengrove Re는 7.75%의 스프레드와 1.44%의 초기 예상 손실을 가진 1억 달러 규모의 재난 채권을 발행하였으며, 만기는 2028년 4월 7일입니다. 이 제안은 초기 목표인 7,500만 달러를 33% 초과 달성했습니다.
2. Greenshoots Re는 기관 투자자들에 의해 지원되는 사이드카 거래를 위해 7천만 달러의 우선주를 발행했습니다.
이 거래들은 캘리포니아 주택 소유자들의 사업을 위해 화재 및 지진 후 화재에 대한 보호를 제공하며, 자본 시장을 통해 재난 초과 손실 및 쿼터 쉐어 용량을 제공합니다. 특히 최근 로스앤젤레스 산불 이후의 성공적인 배치 결과는 Bamboo의 위험 관리 접근 방식에 대한 투자자 신뢰를 보여줍니다.
Bamboo Insurance, une filiale de White Mountains Insurance Group (NYSE: WTM), et Sutton National ont annoncé le renouvellement réussi de leur programme de réassurance. Le renouvellement comprend deux composants clés :
1. Greengrove Re a émis une obligation catastrophe de 100 millions de dollars avec un écart de 7,75 % et une perte initiale attendue de 1,44 %, arrivant à échéance le 7 avril 2028. L'offre a dépassé son objectif initial de 75 millions de dollars de 33 %.
2. Greenshoots Re a émis 70 millions de dollars en actions préférentielles pour une transaction sidecar soutenue par des investisseurs institutionnels.
Ces transactions offrent une protection contre les incendies et les incendies suite à des tremblements de terre pour les entreprises des propriétaires de maison en Californie, offrant à la fois une capacité d'excès de perte catastrophe et de quota part à travers les marchés de capitaux. Le placement réussi, en particulier après les récents incendies de forêt à Los Angeles, démontre la confiance des investisseurs dans l'approche de gestion des risques de Bamboo.
Bamboo Insurance, eine Tochtergesellschaft der White Mountains Insurance Group (NYSE: WTM), und Sutton National haben die erfolgreiche Erneuerung ihres Rückversicherungsprogramms bekannt gegeben. Die Erneuerung umfasst zwei wesentliche Komponenten:
1. Greengrove Re hat eine Katastrophenanleihe in Höhe von 100 Millionen Dollar mit einer Spread von 7,75% und einem anfänglichen Basisverlust von 1,44% ausgegeben, die am 7. April 2028 fällig wird. Das Angebot überstieg das anfängliche Ziel von 75 Millionen Dollar um 33%.
2. Greenshoots Re hat 70 Millionen Dollar an Vorzugsaktien für eine Sidecar-Transaktion ausgegeben, die von institutionellen Investoren unterstützt wird.
Diese Transaktionen bieten Schutz gegen Feuer und Feuer nach Erdbeben für die Geschäfte von Hausbesitzern in Kalifornien und bieten sowohl Katastrophen-Excess-Loss- als auch Quotenanteil-Kapazitäten über die Kapitalmärkte. Der erfolgreiche Platzierungsprozess, insbesondere nach den jüngsten Waldbränden in Los Angeles, zeigt das Vertrauen der Investoren in den Risikomanagementansatz von Bamboo.
- Successful 33% upsize of catastrophe bond to $100M from initial $75M target
- Favorable pricing achieved at lower end of guidance range
- Strong investor support despite recent Los Angeles wildfires
- Additional $70M raised through sidecar transaction
- None.
Insights
The renewal of Bamboo Insurance's reinsurance program represents a significant risk management achievement for White Mountains' subsidiary. The program includes two notable capital market transactions: a
The catastrophe bond's pricing at
These transactions serve dual strategic purposes: diversifying reinsurance capital sources beyond traditional markets and strengthening the partnership between Bamboo and Sutton National in the challenging California homeowners market. The combination of catastrophe excess-of-loss protection against fire/earthquake risks and quota share capacity creates a more resilient risk transfer framework.
Most notably, this marks Bamboo's inaugural catastrophe bond and sidecar issuance, establishing new capital market relationships that could prove valuable as the company continues navigating California's catastrophe-exposed property market. The successful execution despite recent wildfire activity demonstrates investor confidence in Bamboo's catastrophe risk management capabilities.
Greengrove Re Ltd.
Greengrove Re Ltd. issued a
As part of the transaction, Sutton National entered into a catastrophe excess of loss reinsurance contract with Greengrove Re Ltd., which offers protection against fire and fire following earthquake for business written by Bamboo on behalf of Sutton National and provides both parties with a diversified source of catastrophe excess of loss capacity through the capital markets.
Greenshoots Re Ltd.
Greenshoots Re Ltd. issued
As part of the transaction, Sutton National entered into a quota share reinsurance contract with Greenshoots Re Ltd., which enables participation in the underwriting results of Bamboo's business written on behalf of Sutton National and provides both parties with a diversified source of quota share capacity through the capital markets.
"These transactions are another milestone in Bamboo's history and in its partnership with Sutton National," said John Chu, CEO of Bamboo. "These transactions will strengthen our ability to jointly address the coverage needs of
"The catastrophe bond and the sidecar are an essential part of our reinsurance structure and complement a catastrophe excess of loss tower and quota share panel backed by industry-leading reinsurers," said Shane Haverstick, CEO of Sutton National. "We are pleased to have successfully sponsored our first catastrophe bond and sidecar, and done so in partnership with Bamboo, our valued partner in the
GC Securities, a division of MMC Securities LLC, acted as the sole structuring agent and bookrunner for the catastrophe bond and the sole structuring agent and sole placement agent for the sidecar. Willkie Farr & Gallagher LLP served as deal counsel for both transactions.
"We're proud to have supported Sutton National and Bamboo's inaugural catastrophe bond and sidecar issuance," said Liam Martens, Managing Director of GC Securities. "We are very pleased that investors strongly supported these transactions following the recent
MEDIA CONTACT:
Tess Shoe
Sr. Communications Manager | Bamboo Insurance
tshoe@bambooinsurance.com
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SOURCE Bamboo Insurance
FAQ
What is the size and terms of WTM's Greengrove Re catastrophe bond issued in April 2025?
How much did Greenshoots Re raise in its 2025 sidecar transaction for WTM's subsidiary?
What type of insurance protection does the 2025 Greengrove Re catastrophe bond provide?
How did the final Greengrove Re catastrophe bond pricing compare to initial guidance?
