Lloyd’s unveils first 144A cat bond on London Bridge

Lloyd’s has introduced the issuance of the primary 144A disaster bond via its threat transformation platform, London Bridge 2 PCC Restricted.

The transaction, valued at US$100 million, is sponsored by Beazley on behalf of its Lloyd’s syndicates (623, 2623, and 3623), its North American insurance coverage firm (Beazley Extra and Surplus Inc.), and its European provider (Beazley Insurance coverage DAC).

With this transaction, the entire securities issued to institutional traders by the London Bridge automobiles have reached roughly US$750 million, distributed throughout 13 cells. Aon Securities LLC served as the only structuring and book-building agent for the bond issuance, and Mayer Brown was appointed as deal counsel for the transaction.

“That is one other vital milestone for this strategically vital threat transformation car for the Lloyd’s market and reaffirms the flexibleness this car has, offered by its regulatory permissions. We’re delighted that Beazley has been the pioneer for this new issuance, which confirms our perception that the UK market, and Lloyd’s particularly, is a superb place for institutional traders to achieve entry to world re/insurance coverage threat,” Lloyd’s CFO Burkhard Keese mentioned.

“Beazley is delighted to be sponsoring the primary 144A property disaster bond using the London Bridge platform. We had been impressed with the graceful and environment friendly method that an ILS transaction might be issued out of the UK market and we’re grateful for the help acquired from Lloyd’s and Artex all through the method,” Beazley CEO Adrian Cox mentioned.

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