Bermuda-based property catastrophe reinsurer Lumen Re Ltd., within the LGT Capital Partners insurance-linked securities (ILS) platform, has completed its debut Rule 144A catastrophe bond, Photon Re, securing $175 million in index-based collateral protection over a four-year term against two categories of severe hurricane and earthquake events in the United States and Canada.
LGT Capital Partners said the placement enhances Lumen Re’s existing retrocession program and enhances its ability to manage peak risks.
Photon Re is said to underline Lumen Re’s continued commitment to rigorous risk management and underline the supportive conditions in today’s cat bond market, with transparent, index-based structures reportedly remaining in strong demand.
LGT Capital Partners continued: “As a long-term participant in the ILS market, LGT Capital Partners, through its dedicated ILS manager, LGT ILS Partners, believes that high-quality catastrophe bonds issued by diverse sponsors will support overall market depth and resilience.
“As an integral part of LGT’s ILS platform, Lumen Re is well-positioned to contribute to this continued development.”
Klaus Sapelza, chief underwriting officer at Lumen Re, commented: “Photon Re is a natural evolution of our risk transfer strategy. It allows us to manage our peak risks in an efficient and transparent manner while supporting market segments that benefit from a wider range of sponsors. We view this as a deliberate leveraging of current market conditions and an important enhancement to our overall risk framework.”
For more details on this and all other catastrophe bonds, please see the trade directory at our sister publication Artemis.
