AlphaCat, Terra Re Insurance-Linked Securities

January 25, 2019

AlphaCat Managers and Terra Brasis Resseguros S.A. announced the successful completion of a $5 million private catastrophe bond transaction. The 2019 ‘Alpha Terra Validus III’ bond is the third issuance of this pioneering arrangement covering Latin American reinsurance catastrophe risks.

The 2019 notes provide retrocessional reinsurance protection to Terra Brasis Re for property catastrophe exposures, including multi-country earthquake.

The indemnity triggered vehicle is due for maturity on January 15, 2020, listed on the Bermuda Stock Exchange [BSX] and placed with AlphaCat investors.

Lixin Zeng, Chief Executive Officer of AlphaCat commented: “In 2017 we forged new ground alongside Terra Brasis, bringing ILS into Latin America. Extending our partnership in 2018 and again in 2019 demonstrates ILS is established in the region.”

Rodrigo Botti, Chief Executive Officer of Terra Brasis Re commented, “We are pleased to continue to count AlphaCat as a close partner. Insurance penetration in Latin America has been historically low. Fostering ILS technology in the region will be an important tool to close this protection gap.”

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