Farmers companies secure collateralized cat reinsurance

Companies comprising Farmers Insurance Group secured $160 million of collateralized reinsurance for U.S. named storms, earthquakes, severe weather and fire via Topanga Re Ltd., issued through Swiss Re Capital Markets, the unit of Swiss Re Ltd. said Thursday.

The notes provide $100 million of per-occurrence protection across a four-year risk period and $60 million of annual aggregate protection across a two-year risk period, both on an indemnity basis, and include a four-year subrogation extension — a draw for investors, according to Jean-Louis Monnier, head of retro and ILS structuring at Swiss Re's Alternative Capital Partners.

Farmers said in its own statement that it was “pleased” to access the capital markets through the transaction, which is  “designed to integrate into Farmers' existing traditional catastrophe reinsurance program.”

Swiss Re Capital Markets and TigerRisk Capital Markets & Advisory acted as joint structuring agents. Swiss Re Capital Markets acted as sole bookrunner and TigerRisk Capital Markets & Advisory as co-manager, the Farmers statement said.