CEA RETURNS TO CAT BOND MARKET WITH $250M URSA RE II DEAL

The California Earthquake Authority, the state-administered quake insurer, is returning to the catastrophe bond market to secure at least $250m in collateralised quake reinsurance through its Ursa Re II (Series 2020-1) issuance, Artemis.bm has reported. The deal marks the CEA’s second of the year following the $700m dual Sutter Re Ltd (Series 2020-1 and 2020-2) issuance in May. That deal replaced much of the $925m in CEA cat bond cover that matured that month. The new Ursa Re deal with replace some of the $400m in cover from earlier Ursa Re offerings that matures during the fourth quarter, making it possible the new issuance will upsize. Ursa Re II is comprised of a tranche of Class AA notes currently sized at $150m and a tranche of Class D notes sized at $100m.