TD Insurance secures first-of-its-kind Cat bond
TD Insurance Successfully Sponsors $150 Million Cat Bond with Closing of MMIFS Re Ltd. Series 2025-1
Toronto, ON (Jan. 23, 2025) – TD Insurance (TDI) is pleased to announce that it has successfully sponsored its new catastrophe bond (Series 2025-1), which will provide TDI additional reinsurance capacity through a multi-year risk transfer of C$150 million in protection against earthquakes and severe connective storms. The proceeds are invested in CAD denominated European Bank for Reconstruction and Development (EBRD) notes. The bond represents the first of its kind in Canada.
TD Insurance is the first Canadian insurer to sponsor a bond solely focused on catastrophe perils in Canada, which continue to increase across the country. According to the Insurance Bureau of Canada, last year was Canada’s most-destructive season on record for insured losses due to severe weather.
“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,” said James Russell, President and CEO, TD Insurance. “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.”
The reinsurance protection from the MMIFS Re Ltd. issued Series 2025-1 cat bond will provide coverage for earthquakes and severe connective storms in Canada on an indemnity and per-occurrence basis, over a three-year term effective as of January 17, 2025, through December 31, 2027.
TDI was advised by joint bookrunners GC Securities, the capital markets and ILS specialist unit of Guy Carpenter, and TD Securities. GC Securities also served as sole structuring agent.
“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,” said Tim Wiggan, President, and CEO of TD Securities. “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.”
“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,” said Peter Askew, President & CEO of Guy Carpenter Canada.
About TD Insurance
TD Insurance is part of the TD Bank Group, one of Canada’s largest financial services organizations. We work in two sectors: general insurance and life and health insurance. We are the largest direct-response home and auto insurance group and one of the top three personal home and auto insurance groups in Canada. We’re also the national leader in critical illness insurance and a pioneer in affinity marketing, where we work jointly with groups to market insurance to their members.
About TD Bank Group
The Toronto-Dominion Bank and its subsidiaries are collectively known as TD Bank Group (“TD” or the “Bank”). TD is the sixth largest bank in North America by assets and serves more than 27.9 million customers in four key businesses operating in a number of locations in financial centres around the globe: Canadian Personal and Commercial Banking, including TD Canada Trust and TD Auto Finance Canada; U.S. Retail, including TD Bank, America’s Most Convenient Bank®, TD Auto Finance U.S., TD Wealth (U.S.), and an investment in The Charles Schwab Corporation; Wealth Management and Insurance, including TD Wealth (Canada), TD Direct Investing, and TD Insurance; and Wholesale Banking, including TD Securities and TD Cowen. TD also ranks among the world’s leading online financial services firms, with more than 17 million active online and mobile customers. TD had $2.06 trillion in assets on October 31, 2024. The Toronto-Dominion Bank trades under the symbol “TD” on the Toronto and New York Stock Exchanges. For more information, please visit www.td.com.
TD Insurance refers collectively to the following personal lines insurance companies within TD Bank Group: Security National Insurance Company, Primmum Insurance Company, TD General Insurance Company, TD Direct Insurance Company and TD Home and Auto Insurance Company.
TD Securities (USA) LLC is a member of FINRA, NYSE and SIPC. “TD Securities” is a trademark of The Toronto-Dominion Bank (“TD Bank”) and represents investment banking, capital markets and wholesale banking activities conducted through certain subsidiaries and branches of TD Bank.
SOURCE: TD Insurance
Tags: Catastrophe, industry first, Natural Catastrophes, TD