TD Insurance will sponsor the 104.5m Canadian disaster bond

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TD Insurance has announced a new casualty bond sponsorship that will increase its reinsurance capacity by C$150m ($104.5m) to protect against earthquakes and associated severe storms in Canada.

The proceeds were invested in Canadian dollar notes from the European Bank for Reconstruction and Development (EBRD).

TD Insurance stated that this bond is the first of its kind in the country.

TD Insurance claims to be the first Canadian insurer in the country to sponsor a bond specifically designed for catastrophic events.

According to the Insurance Bureau of Canada, last year was the worst season on record for severe weather losses in the country.

The reinsurance protection provided by MMIFS reinsured cat bonds covers earthquakes and severe associated storms in the country both indemnified and periodic.

This coverage is effective for a three-year period from 17 January 2025 to 31 December 2027.

TDI is advised by joint bookkeepers GC Securities and insurance-related Guy Carpenter and TD Securities’ securities specialist division.

GC Securities acted as sole structuring agent.

James Russell, president and CEO of TDI, said: “At TD Insurance, our customers’ presence in times of crisis remains our most important focus, and the release of the Cat Bond will help us continue to protect them when it matters most.”

“At a time of rising costs, we’re looking for ways to provide our customers with the best value possible, and this new bond is another tool at our disposal.”

TD Insurance represents a group of companies including Security National Insurance Company, Premium Insurance Company, TD General Insurance Company, TD Direct Insurance Company, and TD Home and Auto Insurance Company.

“TD Insurance Sponsors 104.5m Canadian Delinquency Bond” was originally created and published by Life Insurance InternationalA brand owned by GlobalData.


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