Swiss Re Capital Markets has structured and placed the issuance of a $US250 million ($367 million) insurance-linked securities (ILS) catastrophe bond for Blackstone Inc. 

The arrangement is the first corporate catastrophe bond covering named storms on an indemnity basis and multiple countries. 

“This transaction is the result of a collaboration between Blackstone and ILS investors to develop a new solution that fits the challenges of an asset manager and expands the boundaries of the ILS market,” Swiss Re Head of ILS Jean-Louis Monnier said. 

“It is a milestone in the ILS market's path to realise its potential as an efficient provider of peak peril capacity.” 

The transaction is Blackstone's first indemnity catastrophe bond and covers named storms as well as earthquakes in the US and Canada. 

Swiss Re Capital Markets says the bond relates to certain real estate funds managed or controlled by affiliates of Blackstone Inc. and was structured via two classes of principal at-risk variable rate notes issued by Wrigley Re, a Bermuda special purpose insurer. 

The $US100 million ($147 million) Series 2023-1 Class A notes provide protection on an indemnity per occurrence basis for named storms in the US and Canada and an indemnity annual aggregate basis for earthquakes in the US excluding California and Canada. 

The other $US150 million ($221 million) Series 2023-1 Class B notes provide protection on an indemnity annual aggregate basis for earthquakes in California. 

Both classes of notes have a three-year risk period starting July 28 and introduce an “innovative” risk-based premium adjustment mechanism to adjust for changes in risk in the covered real estate Portfolio, Swiss Re says.