Florida’s Citizens Property Insurance Corp. is marketing a $400 million catastrophe bond, according to a presale report published by Standard & Poor’s.

Citigroup Global Markets is the sole structuring agent and bookrunner.

Everglades Re 2014-1 has an expected term of three years and a preliminary ‘B’ rating from S&P. It will provide reinsurance against claims resulting from hurricanes on an annual aggregate basis. That means that losses from multiple smaller events could result in a triggering event, allowing Florida Citizens to hold use principal to pay claims. This is in contrast with Florida Citizens first two cat bonds, which were per-occurrence notes, according to the presale report.

AIR Worldwide is the risk modeling agent.

Based on AIR's analysis, on a historical basis since 1900, there have been two years--1926 when two unnamed storms made landfall in Florida and 1992's Hurricane Andrew--that would have resulted in a loss to noteholders.

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