ANOTHER NEW CAT BOND SPONSOR GETS FLORIDA WIND PROTECTION

Florida-focused American Coastal Insurance has created special purpose vehicle Armor Re, a Bermuda-based operation that will provide the sponsor with protection against named storms that strike Florida. Series 2013-1 will provide a minimum of $125m in windstorm protection, reports Artemis. The attachment point will reportedly be $913m in losses, as the bond deal sits above American Coastal's retention and its private-market and state reinsurance cover. The deal is expected to upsize to $200m. The attachment probability is put at 0.42%, with an expected loss of 3.4% and an exhaustion likelihood of 3%. That puts the risk at the low end compared with some recent high-interest high-risk bonds. Willis Capital Markets & Advisory is the bookrunner and structuring agent for the deal. Massachusetts-based AIR Worldwide has provided the risk modelling.