Mercury General Corporation has secured USD150 million of collateralized reinsurance protection from the capital markets through its Luca Re Ltd. (Series 2026-1) catastrophe bond issuance.
The three-year catastrophe bond provides protection against wildfire and fire-following earthquake losses in California on an indemnity trigger and per-occurrence basis. Originally targeting USD100 million, the issuance was upsized to USD150 million following strong investor demand.
Appleby acted as Bermuda counsel, advising on all aspects of Bermuda law, including issuing a legal opinion, coordinating the listing of the notes on the Bermuda Stock Exchange, providing the corporate authorities for the transaction and assisting with the closing of the transaction.
Appleby Global Corporate Services (Bermuda) Ltd provided corporate administration services and Appleby Global Listing Services (Bermuda) Ltd acted as listing sponsor to the issuer.
The transaction was led by Bermuda Managing Partner Brad Adderley, with support from Senior Associate Melinda Mayne.