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

Lloyd’s has introduced the issuance of the primary 144A disaster bond by its danger 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 service (Beazley Insurance coverage DAC).

With this transaction, the overall securities issued to institutional buyers by the London Bridge automobiles have reached roughly US$750 million, distributed throughout 13 cells. Aon Securities LLC served as the only real 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 danger 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 buyers to achieve entry to world re/insurance coverage danger,” 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 approach that an ILS transaction may be issued out of the UK market and we’re grateful for the help obtained from Lloyd’s and Artex all through the method,” Beazley CEO Adrian Cox mentioned.

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