Sutton National & Bamboo complete reinsurance renewal with new sidecar & cat bond

Property and casualty insurer Sutton National and Bamboo Ide8 Insurance Services, LLC., part of White Mountains Insurance Group, Ltd., have announced the completion of Bamboo’s reinsurance programme, which includes a debut catastrophe bond and the execution and funding of a 2025 sidecar transaction.

As listed on our insurance-linked securities (ILS) focused sister publication, Artemis’ extensive Deal Directory of hundreds of catastrophe bonds, Greengrove Re Ltd. (Series 2025-1) provides the carrier with $100 million of reinsurance protection against fires in California.

The cat bond, which was placed in March 2025 with a spread of 7.75% and an initial base expected loss of 1.44%, is structured with an indemnity trigger and covers a three-year term until April 7th, 2028.

Both sponsor and investor appetite for the catastrophe bond product has been extremely strong so far in 2025, and this is reflected by the fact the Greengrove Re cat bond increased in size by 33% while marketing, while the final spread priced at the lower end of initial price guidance of 7.5% to 8.5%, suggesting strong execution for the sponsor.

As part of this transaction, Sutton National, comprised of Sutton Specialty Insurance Company and Sutton National Insurance Company, entered into a catastrophe excess of loss reinsurance contract with Greengrove Re Ltd., which provides protection against both fire and fire following earthquake for business written by Bamboo on behalf of Sutton National.

The renewal of Bamboo’s reinsurance programme also includes a reinsurance sidecar transaction via Greenshoots Re Ltd., which issued $70 million of preference shares for a sidecar supported by numerous institutional investors.

Sutton National entered into a quota share reinsurance contract with Greenshoots Re Ltd., enabling participation in the underwriting results of Bamboo’s business written on behalf of Sutton National.

You can read all about the $70 million Greenshoots Re sidecar and many others on the Artemis directory of collateralized reinsurance sidecar structures.

Both the cat bond and sidecar provide Sutton National and Bamboo with a diversified source of reinsurance capacity through the capital markets.

John Chu, CEO of Bamboo, commented: “These transactions are another milestone in Bamboo’s history and in its partnership with Sutton National. These transactions will strengthen our ability to jointly address the coverage needs of California homeowners and are a validation of Bamboo’s business model, approach to catastrophe risk management, and ability to construct a portfolio which capital markets investors understand and appreciate. We are truly appreciative of investor’s support for our inaugural catastrophe bond and sidecar transactions.”

Shane Haverstick, CEO of Sutton National, added: “The catastrophe bond and the sidecar are an essential part of our reinsurance structure and complement a catastrophe excess of loss tower and quota share panel backed by industry-leading reinsurers. We are pleased to have successfully sponsored our first catastrophe bond and sidecar, and done so in partnership with Bamboo, our valued partner in the California homeowners’ market. We are grateful for the strong investor support across both transactions.”

GC Securities acted as the sole structuring agent and bookrunner for the catastrophe bond and also as the sole structuring agent and sole placement agent for the sidecar. Willkie Farr & Gallagher LLP served as deal counsel for both transactions.

Liam Martens, Managing Director of GC Securities, said: “We’re proud to have supported Sutton National and Bamboo’s inaugural catastrophe bond and sidecar issuance. We are very pleased that investors strongly supported these transactions following the recent Los Angeles wildfires, which we believe reflects a recognition of Bamboo’s unique business model and sound approach to catastrophe risk management. We are grateful to both the Bamboo and Sutton National teams for their partnership and their collective effort and expertise in executing these transactions.”

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