PROGRESSIVE’S ARX UNIT RETURNS TO CAT BOND MARKET

The ARX Holding subsidiary of US property/casualty group Progressive is returning to the catastrophe bond market with the Bonanza Re Ltd (Series 2020-2) issuance to secure at least $100m in protection against a range of perils, Artemis.bm has reported. The offering will provide collateralised reinsurance to ARX Holdings’ American Strategic Insurance Group and Progressive Property Insurance units. The deal is comprised of three tranches. A $100m tranche of Class A notes will provide cover for US named storms on a per-occurrence and indemnity trigger basis from June 1, 2021 through December 2024. Unsized tranches of Class B and Class C notes will provide annual aggregate reinsurance cover for losses from US named storms, severe thunderstorms, winter storms, wildfires and earthquakes only for the 2021 calendar year. The latest deal follows two $200bn cat bonds that ARX sponsored in 2016 and earlier this year.