CEA’S URSA RE CAT BOND UPSIZES TO $400M

The Ursa Re Ltd (Series 2014-1) catastrophe bond that is being issued on behalf of the California Earthquake Authority has grown in size to $400m from the initial $350m owing to investor demand, artemis.bm has reported. The offering, which was launched a week ago, initially included a $150m tranche of Class A notes and a $200m tranche of Class B notes. The less risky Class A notes have accounted for the upsize of the issuance. The Ursa Re cat bond is to provide the CEA, the state-administered quake insurer, with collateralised quake reinsurance over three years. It will fill most of the reinsurance gap created when the CEA’s $150m Embarcadero Re (Series 2012-1) and $300m Embarcadero Re (Series 2012-2) cat bonds expire next February and August, respectively. The latest offering is expected to see final pricing in the next few days, with settlement at the beginning of December.