Japanese insurance group, Tokio Marine & Nichido Fire Insurance will sponsor a $100m catastrophe band to provide collateral earthquake reinsurance protection.
The CAT bond, Kizuna Re III (Series 2026-1) transaction will be issued in Singapore. This will be the third Tokio Marine CAT bond to be issued in Singapore for which the insurer will use a special purpose reinsurance vehicle domiciled in the country.
The Japanese insurance major has been sponsoring CAT bonds since 1997 when it secured a pioneering $100m parametric CAT bond named Parametric Re, and the current one will be the tenth CAT bond for insurer and the seventh in the Kizuna Re series of CAT bond deals.
The new Kizuna Re III 2026-1 CAT bond will provide reinsurance cover to a portfolio of Tokio Marine & Nichido Fire’s business, including commercial, personal and industrial property policies, personal accident, automobile losses, presumably also again including certain reinsurance assumption between the cedant and group companies.
Tokio Marine’s coverage from the Kizuna Re III 2026-1 CAT bond will be on a three-year rolling aggregate and indemnity trigger basis, across a five-year term, as its most recent earthquake CAT bonds have tended to be structured. The CAT bong also features three overlapping three-year aggregate risk periods, that run across the full five-year term of the reinsurance coverage, with maturity slated for early April 2031.
This article was first published on www.artemis.bm.