Lloyd’s re/insurer Inigo enters cat bond market with $115m Montoya Re

Lloyd’s specialty re/insurer  Inigo has entered the catastrophe bond market for the first time, less than 18 months after the firm began writing its portfolio of specialty insurance and reinsurance.

Montoya Re, launched on 1 April, is a $115 million transaction covering earthquake and windstorm risk in the US, Canada and Japan. The risk period will be three years and the coupon is 6.75% above money market fund returns.

The bond was structured by Aon Securities and fronted by Hannover Re.

Adam Alvarez (pictured), head of insight at Inigo, said: “ Inigo has made extensive use of alternative sources of reinsurance capital since our inception. By transferring part of our risk to capital markets as a catastrophe bond, we have further expanded the investor base that is able to access our portfolio of insurance and reinsurance.

“We are pleased to have locked in such a significant part of our hedging strategy for three years during a turbulent time in the markets. By further strengthening our own capital position, we have ensured that we will be able to grow with our clients and offer them the security that they need to manage their most complex risks.”

Inigo is focussed on 10 re/insurance lines of business working exclusively through the broker intermediary market. In March, the company submitted its first set of Syndicate accounts to Lloyd’s of London. Inigo intends to nearly double its underwriting to a controlled premium in excess of $850 million for 2022.

Did you get value from this story?  Sign up to our free daily newsletters and get stories like this sent straight to your inbox.