LONDON – The state-backed Florida Citizens Property Insurance Corporation is set to raise $750 million of hurricane protection through a sale of catastrophe bonds, more than three times the original target, market sources said.
The bond, issued through Forida Citizens' Everglades Re vehicle, had been expected to raise just $200 million. The bond is due to close on Monday, and ranks as the biggest ever placed in a single tranche, they said.
The dramatic increase in the bond's size reflects strong investor demand for the notes, which may have made it cheaper for Florida Citizens to buy cover through the cat bond market than through traditional reinsurance.
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