Successful Launch of Bamboo’s Catastrophe Bond and Sidecar
Property and casualty insurer Sutton National and Bamboo Ide8 Insurance Services, LLC., a division of White Mountains Insurance Group, Ltd., have announced the successful completion of Bamboo’s reinsurance program. This includes the introduction of a debut catastrophe bond and the execution and funding of a 2025 sidecar transaction.
As detailed in Artemis’ extensive Deal Directory of numerous catastrophe bonds, the Greengrove Re Ltd. (Series 2025-1) provides the carrier with $100 million in reinsurance protection against fire incidents in California. The cat bond, issued in March 2025, features a spread of 7.75% and an initial base expected loss of 1.44%. It is structured with an indemnity trigger and covers a three-year term through April 7th, 2028.
Interest from both sponsors and investors in the catastrophe bond market has been notably robust in 2025. This is evidenced by the 33% increase in the Greengrove Re cat bond size during marketing. The final spread priced at the lower end of the initial price guidance of 7.5% to 8.5%, indicating strong execution for the sponsor.
Within this transaction, Sutton National, which encompasses Sutton Specialty Insurance Company and Sutton National Insurance Company, entered into a catastrophe excess of loss reinsurance contract with Greengrove Re Ltd.. This agreement offers protection against both fire and fire following earthquakes for business written by Bamboo on behalf of Sutton National.
The renewal of Bamboo’s reinsurance program also includes a reinsurance sidecar transaction through Greenshoots Re Ltd., which issued $70 million in preference shares for a sidecar backed by numerous institutional investors. Sutton National engaged in a quota share reinsurance contract with Greenshoots Re Ltd., allowing participation in the underwriting results of Bamboo’s business conducted on behalf of Sutton National.
You can explore more about the $70 million Greenshoots Re sidecar and others in the Artemis directory of collateralized reinsurance sidecar structures. Both the cat bond and sidecar offer Sutton National and Bamboo a diversified source of reinsurance capacity via capital markets.
Statements from Leadership
John Chu, CEO of Bamboo, remarked, “These transactions mark another milestone in Bamboo’s history and its collaboration with Sutton National. They will enhance our capability to jointly address the coverage needs of California homeowners and validate Bamboo’s business model, approach to catastrophe risk management, and portfolio construction that resonates with capital market investors. We are truly grateful for the investors’ support for our inaugural catastrophe bond and sidecar transactions.”
Shane Haverstick, CEO of Sutton National, added, “The catastrophe bond and sidecar are crucial components of our reinsurance structure, complementing a catastrophe excess of loss tower and quota share panel supported by leading industry reinsurers. We are pleased to have successfully sponsored our first catastrophe bond and sidecar, in partnership with Bamboo, our esteemed partner in the California homeowners’ market. We appreciate the strong investor support across both transactions.”
GC Securities served as the sole structuring agent and bookrunner for the catastrophe bond and as the sole structuring agent and placement agent for the sidecar. Willkie Farr & Gallagher LLP acted as deal counsel for both transactions.
Liam Martens, Managing Director of GC Securities, commented, “We’re proud to have facilitated Sutton National and Bamboo’s inaugural catastrophe bond and sidecar issuance. We are delighted that investors have robustly supported these transactions following the recent Los Angeles wildfires, reflecting a recognition of Bamboo’s unique business model and sound approach to catastrophe risk management. We extend our gratitude to both the Bamboo and Sutton National teams for their partnership and collective expertise in executing these transactions.”
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