TD Insurance (TDI) has successfully sponsored its second catastrophe bond, MMIFS Re Ltd. (Series 2026-1), which will provide additional reinsurance capacity through a C$115 million multi-year risk transfer against designated storms, earthquakes, severe convective storms, winter storms and wildfires in Canada.
The reinsurance of the catastrophe bonds will provide additional protection against the above-mentioned risks in Canada and will be effective for a three-year period from January 9, 2026 to December 31, 2028.
TDI explained that the proceeds will be invested in European Bank for Reconstruction and Development (EBRD) notes denominated in Canadian dollars.
The placement follows TDI’s completion of its first placement of bonds MMIFS Re Ltd. (Series 2025-1) on January 25, 2025.
This makes the company the first Canadian insurance company to sponsor a bond specifically targeted at the country’s catastrophe risk.
Read more about this cat bond and others in our sister publication, Artemis Trading Directory.
TDI is advised by joint bookrunners GC Securities, a subsidiary of MMC Securities, and TD Securities. GC Securities also acted as exclusive structuring agent.
“Natural disasters can have a devastating impact on Canadians, their families and entire communities. Protecting our customers in their time of need is a responsibility we take very seriously,” said James Russell, senior executive vice president and president and chief executive officer (CEO) of TD Insurance.
“Through the Second Catastrophe Bond, we are able to help manage the rising costs of these events and provide our clients with the most competitive pricing.”
Tim Wiggan, President and CEO of TD Securities, added: “We are proud to once again serve as joint bookrunners on a second catastrophe bond to continue to strengthen communities’ resilience against severe weather events.
“We remain at the forefront of leveraging capital markets expertise in innovative ways to evolve to meet our clients’ needs and ensure reliable protection when it is needed most.”
