American Coastal Insurance coverage Firm has lifted the goal measurement for its newest disaster bond, with now as much as $150 million in Florida named storm reinsurance safety sought from this new Armor Re II Ltd. (Series 2024-2) issuance, Artemis has discovered.
It’s set to be the second Armor Re II disaster bond from the insurer of 2024, having introduced a $200 million Armor Re II Ltd. (Series 2024-1) cat bond issuance to market again in April.
American Coastal Insurance coverage Firm (AmCoastal Insurance coverage) isn’t any stranger to the cat bond market and this new issuance would be the seventh to take the Armor Re title, though numerous these the place sponsored by United and Interboro entities, in addition to AmCoastal Insurance coverage.
See details of every catastrophe bond transaction in the Artemis Deal Directory.
When AmCoastal Insurance coverage came to market with this new Armor Re II 2024-2 cat bond in November, the preliminary goal measurement was to safe $100 million of reinsurance.
Now, we’re instructed by sources that the goal is to safe between that degree and $150 million of reinsurance from this new cat bond deal, whereas on the similar time the worth steerage has fallen, as soon as once more indicating the sturdy investor demand being seen presently for brand new disaster bond points.
These Armor Re II 2024-2 Class A cat bond notes will present American Coastal with a simply over three-year supply of Florida named storm reinsurance safety, working to the tip of December 2027, on an indemnity set off and per-occurrence foundation over that threat interval.
The now as much as $150 million of Sequence 2024-2 Class A notes that Armor Re II Ltd. will challenge have an preliminary anticipated lack of 0.59% and have been initially provided to cat bond traders with unfold worth steerage in a spread from 9% to 10%.
We’re now instructed that in addition to trying set to upsize, the worth steerage for these cat bond notes has additionally been lowered to the bottom-end of that vary, at 9%.
Whereas virtually each cat bond is increasing in measurement and pricing down, this one being Florida wind particular ought to show to potential sponsors of cat bonds subsequent yr that getting out early with their Florida hurricane cat bond points could also be advisable, because the execution seen within the cat bond market proper now can lead to engaging pricing for insurer sponsors.
You possibly can learn all about this new Armor Re II Ltd. (Series 2024-2) disaster bond transaction and each different cat bond ever issued in our Artemis Deal Directory.
