INVESTORS FACE LOSS ON GATOR RE CATASTROPHE BOND

Investors in the Gator Re catastrophe bond face at least a $20m loss of principal on the deal, as qualifying claims stood at $195.15m at the end of November, surpassing the attachment point of $175m in losses, artemis.bm has reported. The Gator Re transaction provided American Strategic Insurance Group with up to $200m in collateralised cover for losses from named storms and severe thunderstorms, the latter of which increased steadily during the course of 2016, the last year of the 33-month deal. Loss figures so far are only preliminary estimates that will have to be updated and combined with any qualifying losses from events during December before investors will know the precise loss of principal on the deal.