TD Insurance sponsors $150m debut cat bond

TD Insurance (TDI) has sponsored its debut catastrophe bond, which will provide the firm additional reinsurance capacity through a multi-year risk transfer of C$150 million in protection against earthquakes and severe convective storms in Canada.

As per TDI, the reinsurance protection from this MMIFS Re Ltd. issued Series 2025-1 catastrophe bond will provide coverage on an indemnity and per-occurrence basis over a three-year term from January 17, 2025, to December 31, 2027.

Joint bookrunners GC Securities, the capital markets and ILS specialist unit of Guy Carpenter, and TD Securities reportedly advised TDI.

GC Securities also served as the sole structuring agent.

Read more on this MMIFS Re Ltd. (Series 2025-1) catastrophe bond and every other ever issued in the Artemis Deal Directory.

James Russell, President and CEO, TD Insurance, commented, “At TD Insurance, being there for our customers during their time of need remains our most important focus, and the issuance of a cat bond helps ensure we can continue to protect them when it matters most.

“At a time of increasing costs, we’re always looking for ways to provide the best possible pricing to our customers, and this new bond is another tool at our disposal.”

Peter Askew, President & CEO of Guy Carpenter Canada, said, “As the first Canadian peril-focused catastrophe bond, this transaction opens the door for Canadian cedents to underwrite natural catastrophe risk with more confidence, while protecting policyholders’ interests. It marks a significant milestone in the Canadian reinsurance market.”

Tim Wiggan, President, and CEO of TD Securities, added, “We are proud to have served as joint bookrunner on this landmark catastrophe bond – the first of its kind in Canada, reflecting our commitment to delivering innovative solutions that address the evolving needs of clients and the market.

“By leveraging capital markets to support resilience against natural disasters, we are helping to pave the way for a more secure future for Canadians and our clients.”

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