BMS is pleased to announce the successful closing of Chartwell Re Ltd. – Series 2025-1, a $330 million Rule 144A Catastrophe Bond and the first of its kind sponsored by US Coastal Insurance Company (“USCIC”) and US Coastal Property and Casualty Insurance Company (“USCPC”) - together known as “US Coastal.”
This landmark transaction marks a strategic milestone in US Coastal’s risk transfer evolution, unifying two reinsurance programs into a single, efficient platform aimed at long-term capital markets engagement.
BMS Capital Solutions & Advisory served as joint structuring agent and joint bookrunner on the transaction, which was upsized from its original $310 million target and priced below initial guidance across all tranches - demonstrating strong investor demand and confidence in the structure and sponsor. The deal follows more than six months of close collaboration between BMS and US Coastal to design a structure that enhances capital efficiency, broadens investor access, and secures multi-year capacity.
The catastrophe bond provides indemnity-triggered, per-occurrence reinsurance protection against named storm losses across US Coastal’s hurricane-exposed markets, including Alabama, Florida, Mississippi, New Jersey, New York, Rhode Island, and Texas. The bond features a cascading, shared-limit structure across both entities - each with partially distinct ownership - enabling coordinated, efficient capital deployment across the group.
Michael McNitt, Chief Executive Officer, Cabrillo Coastal General Insurance Agency, LLC, said: We appreciate the tremendous effort, creative thinking, and solid execution demonstrated by all parties involved. We’re grateful for the strong support from capital markets investors and the continued backing of our industry-leading reinsurance partners. We value these relationships and look forward to growing and strengthening them in the future.
Andras Bohm, CEO & Managing Director, BMS Capital Solutions & Advisory, said: BMS advised on the strategic redesign of US Coastal’s reinsurance program and helped introduce their story to the ILS community. The culmination of hard work and collaboration resulted in one of the largest cat bonds ever sponsored by a Demotech-rated carrier and one of the few shared-limit structures that have been successfully executed between separately owned underwriting companies. The strong investor response - with pricing 8-11% below the mid-point of the initial guidance - reflects the market’s confidence in both the structure and the sponsor. We are proud to have been part of this journey.