Sutton National Group has sponsored its first collateralized reinsurance sidecar issuance, a $70 million Greenshoots Re Ltd., which alongside its recent debut $100 million Greengrove Re Ltd. (Series 2025-1) catastrophe bond now provide core catastrophe cover for business written by Bamboo Ide8 Insurance Services, LLC.
Sutton National announced today the successful renewal of Bamboo’s reinsurance program.
Alongside the successful closing of its debut catastrophe bond, the Greengrove Re Ltd. Series 2025-1 deal we’ve been covering recently, it has also announced the execution and funding of the Greenshoots Re Ltd. Series 2025-1 sidecar transaction to provide an additional $70 million of reinsurance capacity.
Sutton National Group entered the cat bond market for the first time in March, looking to secure $75 million or more in fire reinsurance protection in California from the Greengrove Re Series 2025-1 deal.
The target size for the Greengrove Re cat bond was raised by 33% to $100 million in response to investor demand, while the spread guidance was narrowed towards the upper-end of initial guidance.
In the end, the Greengrove Re 2025-1 cat bond notes were priced to provide Sutton National its upsized target for $100 million of fire focused California reinsurance from the deal, while the spread was finalised at the mid-point of initial guidance, as we reported back on March 20th.
On the reinsurance sidecar side of the renewal for Bamboo, Greenshoots Re Ltd. issued $70 million of preference shares for which have been supported by several institutional investors, the company explained.
Under the Greenshoots Re sidecar transaction, Sutton National entered into a quota share reinsurance contract with Greenshoots Re Ltd., enabling the investors supporting the structure to participate in the underwriting results of Bamboo’s insurance business written on behalf of Sutton National, providing both parties with a diversified source of quota share capacity sourced from the capital markets.
“These transactions are another milestone in Bamboo’s history and in its partnership with Sutton National,” explained John Chu, CEO of Bamboo. “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.”
“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,” added Shane Haverstick, CEO of Sutton National. “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 the sole structuring agent and sole placement agent for the reinsurance sidecar as well, while Willkie Farr & Gallagher LLP acted as deal counsel for both of these recent collateralized reinsurance transactions.
“We’re proud to have supported Sutton National and Bamboo’s inaugural catastrophe bond and sidecar issuance,” Liam Martens, Managing Director of GC Securities commented. “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.”
As a reminder, you can read all about the Greengrove Re Ltd. (Series 2025-1) catastrophe bond and every other cat bond ever issued in the extensive Artemis Deal Directory.
Find details of numerous reinsurance sidecar investments and transactions in our directory of collateralized reinsurance sidecars transactions.