March 4, 2024

The $50 million Integrity Re Ltd. (Series 2019-1) catastrophe bond notes sponsored by major US insurer American Integrity have now extended their maturities as they remain at the potential risk of continued developments in last year’s hurricane damage Ian.

American Integrity MarkAfter Hurricane Ian hit Florida in September 2022, American Integrity’s outstanding catastrophe bonds fell sharply in value.

The most at risk is the $150 million Integrity Re II Pte. Ltd. (Series 2020-1) offering, whose maturities have been pushed back to April 2028 due to the threat of losses from Hurricane Ian.

These Integrity Re 2022 cat bond notes are still the most marked down in the secondary market, with price discounts of up to 50% still on some cat bond trading desks.

The $50 million Integrity Re 2019-1 catastrophe bonds were due to mature in June 2023, but we have now learned that these bonds have also been extended to June 2028.

At one point, after Hurricane Ian made landfall, those Integrity Re 2019 cat bonds were down about 90% in value, as were all of American Integrity’s outstanding cat bonds at the time.

But prices of 2019 cat bonds then recovered to discount about 50% by November 2022, and the recovery has continued, as has been seen with many other cat bonds since Ian, so in recent weeks These Integrity Re 2019-1 catastrophe bond notes have bids marked between 70 and 90, depending on which broker table you look at.

As a result, American Integrity has elected to extend the maturity of the 2019 Integrity Re notes by five years to ensure that collateral will be available when the final losses from Hurricane Ian reach the point of attachment.

Integrity Re Ltd. (Series 2022-1) $75 million catastrophe bond notes are also still downgraded, but only by about 10 cents so far.

American Integrity has now elected to long-roll two of its Integrity Re cat bonds through 2028, meaning its reinsurance protection will still be available as Hurricane Ian losses continue to settle.

You can view details of many cat bonds that have been triggered and paid out, as well as those that are currently considered risky, in our trade directory.

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