International reinsurance agency Swiss Re is again within the disaster bond market searching for $150 million or extra in North American earthquake and named storm retrocessional safety from capital market buyers, by way of a Matterhorn Re Ltd. (Series 2025-1) transaction.
This issuance would be the twelfth takedown below Swiss Re’s Matterhorn Re disaster bond program and provides to the lengthy listing of cat bond transactions we have now tracked from the reinsurance firm over time.
This Sequence 2025-1 issuance would be the first pure disaster bond below the Matterhorn Re program since 2022, with Swiss Re’s final deal having been its first cyber cat bond in 2023.
For this newest issuance, Matterhorn Re Ltd. will look to problem two tranches of Sequence 2025-1 cat bond notes that might be offered to buyers and the proceeds used to collateralize a retrocessional reinsurance settlement between the particular objective automobile and Swiss Re, Artemis has discovered.
These retrocession agreements are designed to offer Swiss Re with $150 million or extra in safety in opposition to losses from North American earthquakes and named storms, every on an annual combination and weighted {industry} loss index set off foundation.
The Matterhorn Re 2025-1 cat bond notes will present Swiss Re with cowl throughout three annual danger durations from the date of issuance, we’re informed.
A $75 million Class A tranche of notes will present Swiss Re with combination retro safety for US, DC and Canada earthquakes, and named storm losses affecting northeast US states and Canada.
The Class A notes will include an preliminary attachment level of 4.99%, an preliminary anticipated lack of 3.87% and are being provided to buyers with worth steering in a spread from 7.5% to eight.25%, we perceive.
A $75 million Class B tranche of notes present protection throughout a barely totally different space, being US, DC and Canada earthquakes, however then named storm losses affecting all 50 states of the US, DC and Canada.
The Class B notes have an preliminary attachment level of 8.17%, an preliminary anticipated lack of 6% and are being provided to buyers with worth steering in a spread from 12.75% to 13.75%, sources mentioned.
There are a selection of tranches of excellent Matterhorn Re disaster bond notes that mature later in 2025, the primary two being in March, then an extra tranche in August.
Because of this, it’s maybe no shock to see Swiss Re returning to interchange a few of this protection. Whereas that is additionally probably an opportune time to convey a brand new industry-index cat bond deal to market, given the sturdy placement execution seen just lately.
You may learn all about this new disaster bond from Swiss Re, the Matterhorn Re Ltd. (Series 2025-1) transaction, and each different cat bond ever issued within the Artemis Deal Directory.
