Argo Complete Issuance Of $172M Cat Bond
Argo Group International Holdings, Ltd. announced the successful placement of a series of three catastrophe bonds which will provide $172 million of protection to its insurance and reinsurance subsidiaries through Loma Re Insurance (Bermuda) Ltd.
Coverage provided through the Loma bond program incepts January 1, 2014, and runs for a period of four years, protecting Argo Group’s participating US insurance units, Argo Re, and Lloyd’s Syndicate 1200 against U.S. hurricanes, earthquakes and convective storms and Canadian earthquakes.
This issuance continues Argo Group’s participation in the Insurance Linked Securities (ILS) market. While providing reinsurance protection from the frequency of catastrophe losses, participation in the ILS market is also expected to position Argo Group to continue to capitalize on market opportunities, by efficiently replacing capital otherwise needed to support the risk of frequent and sizable events.
Argo Group President and Chief Executive Officer Mark E. Watson III said, “We were pleased to expand our participation in the ILS market as a key part of our catastrophe risk management program. The aggregate coverage and term of the Loma Re protection adds attractive stability to Argo’s financial results.”
