Cat bond covers severe Florida storms

A $75 million catastrophe bond that will cover named storms and severe thunderstorms, including tornado and hail events in Florida, has been completed for homeowners insurer Security First Insurance Co. in Ormond Beach, Florida.

GC Securities, a division of MMC Securities L.L.C., announced the bond on Monday. It was placed through First Coast Re Ltd., a newly formed special purpose insurer domiciled in Bermuda.

GC Securities said this is Security First’s first use of catastrophe bond-based reinsurance. The expected maturity date is June 7, 2019.