Migdal Insurance Company’s sponsorship of a $100 million Turris Re Ltd. (Series 2025-1) Israel earthquake catastrophe bond, which delivered an entirely new peril to the cat bond market, represents an important development for Israel and a strong example of the work Howden Capital Markets & Advisory (HCMA) is delivering across global markets, according to Jarad Madea, CEO, HCMA.
In October, Migdal Insurance became the latest first-time sponsor to debut in the catastrophe bond market, with the company seeking a $100 million source of multi-year, fully-collateralized and capital markets backed reinsurance protection against earthquakes in Israel, through this Turris Re Ltd. Series 2025-1 deal.
In early December, we reported that Migdal Insurance had managed to successfully secure that targeted earthquake reinsurance, with the notes priced at the top-end of the guidance range.
As mentioned, the cat bond deal introduces a new source of risk-transfer capacity to the Israeli market.
HCMA also states that the transaction reflects the organisation’s leadership in delivering innovative capital-markets solutions to clients globally.
“The issuance supports Migdal Insurance and Financial Holdings Ltd. in its strategy to diversify capital sources and build long-term engagement with the global Insurance-Linked Securities (ILS) investor community. It also demonstrates the growing relevance of alternative capital in expanding insurers’ resilience and protection options,” HCMA explained.
HCMA advised Migdal Insurance throughout the full lifecycle of the Turris Re Ltd. (Series 2025-1) cat bond issuance, from evaluating market feasibility and structuring the bond, to engaging investors and final execution.
HCMA also explained that the success of the Migdal Insurance’s debut cat bond marks a “meaningful expansion” of the tools available to the Israeli insurance market.
As well as this, HCMA noted that the transaction creates a new pathway for Israeli institutions to engage with the global ILS market and lays the groundwork for further innovation within the region.
Jarad Madea, CEO, Howden Capital Markets & Advisory, commented: “We are proud to have supported Migdal on this milestone transaction. Turris Re Ltd. showcases HCMA’s structuring and execution expertise, and the value we bring to clients seeking innovative access to the capital markets.
“This outcome was strengthened by the close collaboration between Howden Re and HCMA, reflecting the integrated approach we bring to delivering innovative solutions. Our team continues to set the standard for ILS advisory, and we remain committed to helping insurers broaden their risk-transfer options, strengthen resilience and realise the benefits of alternative capital. This transaction is an important development for Israel and a strong example of the work HCMA is delivering across global markets.”
Mitchell Rosenberg, Managing Director, Global Co-Head of Insurance-Linked Securities at HCMA, said: “This inaugural cat bond represents a major step forward for the Israeli insurance sector and a meaningful expansion of risk-transfer options available to domestic institutions. Migdal’s leadership in embracing capital-markets solutions has set a strong precedent, and the high-quality engagement from ILS investors underscores their confidence in both Migdal’s risk management capabilities and the long-term potential of Israel as an emerging ILS region.”
Elad Shelef, Managing Director, Howden Re Israel, added: “This achievement represents true innovation for the Israeli market, broadening and diversifying the capital base behind earthquake risk. We are proud to have supported Migdal, and it is no coincidence that Howden Re, through HCMA, is leading this change by challenging the status quo. This is only the beginning of Israel’s adoption of solutions that bridge reinsurance and the capital markets.”
As a reminder, you can read all about this Turris Re Ltd. (Series 2025-1) catastrophe bond and every other cat bond transaction issued in our extensive Deal Directory.
