By Rebecca Delaney

March 17 - (The Insurer) - UK reinsurance backstop Flood Re has completed its debut catastrophe bond Vision 2039 using the London Bridge 2 PCC Limited transformer vehicle, the first use of the structure by a non-Lloyd's entity.

Marking Flood Re's entry into the cat bond market, Vision 2039 has secured 140 million pounds of fully collateralised flood retrocessional reinsurance over three years.

The bond covers losses across England, Wales, Scotland and Northern Ireland.

As well as being the first non-Lloyd's entity to use the London Bridge 2 vehicle, Vision 2039 is also notable as the first UK flood risk indemnity cat bond to be brought to market, supported by Guy Carpenter.

Flood Re said the placement strengthens the diversification of its reinsurance programme and broader risk transfer strategy to support the scheme's mission to ensure the accessibility and affordability of flood insurance for UK households.

Newly appointed Flood Re CEO Perry Thomas commented: "This milestone expands our access to alternative private market risk transfer, and complements our wider traditional reinsurance structure reducing reliance on traditional reinsurance.

"Over time, we expect subsequent issuances to become even more cost-effective, improving programme efficiency. Developing our capability in this market supports Flood Re’s medium-term viability and long-term transition planning. As we move into a new era for the scheme, we remain committed to building lasting resilience and protection for future generations."

Burkhard Keese, CFO at Lloyd’s, added: “I am delighted to see London Bridge 2 as the issuance vehicle for Flood Re’s inaugural cat bond, the first time it has been used to support the reinsurance of risk from a non-Lloyd’s insurer."