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California Earthquake Authority lifts Ursa Re cat bond target to $200m

April 11, 2023

The California Earthquake Authority (CEA) has lifted its target for its new Ursa Re Ltd. (Series 2023-1) catastrophe bond transaction, with now $200 million of reinsurance sought, while the pricing guidance has dropped for both of the tranches being issued.

The California Earthquake Authority (CEA) returned to the catastrophe bond market in late March, with what will be its first issuance of 2023.

The insurers special purpose insurer in Bermuda Ursa Re Ltd. is aiming to issue two tranches of Series 2023-1 notes, that will be sold to investors and the proceeds used to collateralize a retrocessional reinsurance agreement with Swiss Re, while Swiss Re will in turn provide the earthquake reinsurance to the CEA.

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