Gallatin Point Sponsored Marlon Ltd. (2024-1) Class A and Class B Notes

Transaction Overview

On May 31, 2024, Gallatin Point Capital LLC (“Gallatin Point”) sponsored its first 144A Cat Bond through Marlon Ltd.

Marlon Ltd. issued two classes of notes in 144A Cat Bond form, providing Gallatin Point access to county-weighted industry loss coverage on both a per-occurrence and multi-event capped aggregate basis

The transaction provides Gallatin Point with a new, valuable source of fully collateralized reinsurance capital to support and protect their insurance investments over the course of three wind seasons, creating increased certainty surrounding the expected return of the fund at a time when their portfolio companies in the P&C space have grown in size and value

Class A Notes: Florida Named Storm

  • Trigger: Per occurrence
  • Expected Loss (Base Case / WSST): 0.65% / 0.76%
  • Final Size: $100mm
  • Final Pricing: 7.00%

Class B Notes: Florida Named Storm

  • Triggers: Multi-event capped aggregate and per-occurrence
  • Expected Loss (Base Case / WSST): 0.92% / 1.14%
  • Final Size: $50mm
  • Final Pricing: 11.00%

Howden Tiger Capital Markets & Advisory Role

Howden Capital Markets & Advisory (“HCMA”) acted as Sole Structuring Agent, Sole Bookrunner and Sole Initial Purchaser

  • Presented innovative structuring ideas and helped to finalize the structure
  • Assisted in all aspects of the structuring and placement including, but not limited to:
    • Structuring and coordinating with legal counsel and other service providers
    • Finalizing investor presentation, risk analysis results and offering documents
    • Global investor presentation and order book building process
    • Investor roadshow and marketing efforts
  • Acted as Initial Purchaser, handling takedown of the Notes