Mitsui Sumitomo returns to cat bond market

February 25 2016 by InsuranceAsia News Staff

Japanese major Mitsui Sumitomo is returning to the cat bond market almost four years after its last transaction.

The insurer has recently issued Akibare Re (Series 2016-1) cat bond, which raises US$175 million of Japan typhoon reinsurance protection.

The new offering will replace and may increase the US$130 million Akibare II, which was issued in 2012 and will mature at the end of March 2016.

Online publication Artemis quoted unnamed sources as saying that Akibare Re will issue a single Class A tranche of notes that will total US$175 million.

The notes will attach at ¥300 billion (US$2.68 billion) of losses and cover a layer up to ¥340 billion, giving them an attachment probability of 1.36% and an expected loss of 1.19%.

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