CEA targets a $ 250 million bond issue + Ursa Re II 2020

The California Earthquake Authority (CEA) is back in the disaster bond market with the second issue it has sponsored so far this year, and is seeking a $ 250 million or greater source of earthquake reinsurance from Ursa Re II Ltd. (Series 2020-In Time) Earlier this year, CEA, a California nonprofit residential earthquake insurance company, secured $ 700 million in earthquake reinsurance through the issuance of Sutter Re Ltd. (Series 20201- & 2020-2).

But for the next disaster bond deal, CEA reverted to the title of Ursa Re, registering a Bermuda-based special purpose insurer called Ursa Re II Ltd for the purpose of another foray into the capital markets.

For CEA, the use of catastrophe bonds, guaranteed reinsurance and Insurance Linked Securities (ILS) is central to the reinsurance program arrangements.

CEA’s Reinsurance Tower grew to a new level, in terms of size, at $ 8.6 billion in January 2020 renovations.

At the time, CEA had roughly $ 1.975 billion in earthquake reinsurance backed by catastrophe bonds, but $ 925 million of it matured in May, while the Sutter Re cat bond added $ 700 million, which means cat bonds It actually became a slightly smaller component of the CEA Reinsurance Tower during 2020.

Now, another $ 400 million of Ursa Re cat outstanding bonds is set to mature in the latest quarter, which means this new Ursa Re II bond issue has every opportunity to inflate to replace at least that.

But, of course, market conditions and pricing or coverage terms will be essential, as CEA looks to improve its reinsurance program via traditional market sources and capital. The efficiency of the various sources of capital is therefore likely to be a major driver for CEA as it defines its mix of risk transfer tools during the remainder of 2020 through January 2021 renewals.

The newly registered Ursa Re II Ltd vehicle will issue two tranches of the banknote in the 2020-1 Series Edition, sources told us.

Ursa Re II will issue an AA segment of $ 150 million or more of banknotes and a Class D segment of banknotes of $ 100 million or more, we are told.

Each of these bond segments will be sold to third-party investors and funds, with the proceeds used for safeguards from earthquake reinsurance agreements between Ursa Re II and CEA.

The bonds will provide CEA with at least $ 250 million in earthquake reinsurance protection in California over three years, on an annualized total and compensation basis.

We understand that the $ 150 million in AA banknote is the lowest risk tier than the Ursa Re II 2020-1 Cat Bond issue, with an expected initial loss of 0.9% and is being marketed to ILS investors with price guidance in the range of 3.5% to 4%.

Meanwhile, $ 100 million Class D bonds are higher risk, with an expected initial loss of 2.53% and offered to ILS investors with coupon routing from 5.75% to 6.25%.

Coupon ranges are relatively close to the previous year’s deals, but depending on where you settle for the marketed ranges, it appears that this deal may offer investors a slight increase in risk-adjusted rates that would be in line with the conditions of the reinsurance market.

We will keep you updated with the launch of the Ursa Re II Ltd. bond issue. New (Series 2020-1) from the California Earthquake Authority (CEA) on the market.

You can read all about this New Deal and all other disaster bonds issued at Artemis Deals Guide.

.

What Are The Main Benefits Of Comparing Car Insurance Quotes Online

LOS ANGELES, CA / ACCESSWIRE / June 24, 2020, / Compare-autoinsurance.Org has launched a new blog post that presents the main benefits of comparing multiple car insurance quotes. For more info and free online quotes, please visit https://compare-autoinsurance.Org/the-advantages-of-comparing-prices-with-car-insurance-quotes-online/ The modern society has numerous technological advantages. One important advantage is the speed at which information is sent and received. With the help of the internet, the shopping habits of many persons have drastically changed. The car insurance industry hasn't remained untouched by these changes. On the internet, drivers can compare insurance prices and find out which sellers have the best offers. View photos The advantages of comparing online car insurance quotes are the following: Online quotes can be obtained from anywhere and at any time. Unlike physical insurance agencies, websites don't have a specific schedule and they are available at any time. Drivers that have busy working schedules, can compare quotes from anywhere and at any time, even at midnight. Multiple choices. Almost all insurance providers, no matter if they are well-known brands or just local insurers, have an online presence. Online quotes will allow policyholders the chance to discover multiple insurance companies and check their prices. Drivers are no longer required to get quotes from just a few known insurance companies. Also, local and regional insurers can provide lower insurance rates for the same services. Accurate insurance estimates. Online quotes can only be accurate if the customers provide accurate and real info about their car models and driving history. Lying about past driving incidents can make the price estimates to be lower, but when dealing with an insurance company lying to them is useless. Usually, insurance companies will do research about a potential customer before granting him coverage. Online quotes can be sorted easily. Although drivers are recommended to not choose a policy just based on its price, drivers can easily sort quotes by insurance price. Using brokerage websites will allow drivers to get quotes from multiple insurers, thus making the comparison faster and easier. For additional info, money-saving tips, and free car insurance quotes, visit https://compare-autoinsurance.Org/ Compare-autoinsurance.Org is an online provider of life, home, health, and auto insurance quotes. This website is unique because it does not simply stick to one kind of insurance provider, but brings the clients the best deals from many different online insurance carriers. In this way, clients have access to offers from multiple carriers all in one place: this website. On this site, customers have access to quotes for insurance plans from various agencies, such as local or nationwide agencies, brand names insurance companies, etc. "Online quotes can easily help drivers obtain better car insurance deals. All they have to do is to complete an online form with accurate and real info, then compare prices", said Russell Rabichev, Marketing Director of Internet Marketing Company. CONTACT: Company Name: Internet Marketing CompanyPerson for contact Name: Gurgu CPhone Number: (818) 359-3898Email: [email protected]: https://compare-autoinsurance.Org/ SOURCE: Compare-autoinsurance.Org View source version on accesswire.Com:https://www.Accesswire.Com/595055/What-Are-The-Main-Benefits-Of-Comparing-Car-Insurance-Quotes-Online View photos