US insurer Assurant uses bond to cover itself until 2012
US specialty insurer Assurant is set to price a $150m catastrophe bond, its first cat bond, Reuters reported.
It will be issued via Cayman Islands-based special-purpose vehicle Ibis Re, will be split into two tranches of $75m.
Tranche A was likely to pay a coupon of 10.25 over Libor while tranche B was likely to be priced at 14.25 over Libor.
Goldman Sachs is sole arranger for the deal.
The bonds will protect subsidiaries of Assurant including American Security Insurance and American Bankers Insurance against some losses from US hurricanes until April 2012.
Credit rating agency Standard & Poor's assigned preliminary ratings of BB and BB-.
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