Additional reflecting the high-demand for brand new disaster bond points presently, the Armor Re II Ltd. (Series 2024-2) issuance for sponsor American Coastal Insurance coverage Firm (AmCoastal) has elevated in dimension once more, with now as much as $200 million in Florida named storm reinsurance safety sought.
When AmCoastal Insurance coverage came to market with this new Armor Re II 2024-2 cat bond in November, the preliminary goal dimension was to safe $100 million of reinsurance.
However, as we reported yesterday, the insurer increased the target size for the issuance, with between $100 million and $150 million of reinsurance then being sought.
Now, in a second replace on the deal, we’re instructed that the dimensions goal has been elevated once more, with now between $150 million and $200 million of reinsurance being the goal for AmCoastal Insurance coverage.
On the similar time, we’re additionally instructed that the worth steering for the now as much as $200 million of Armor Re II 2024-2 cat bond notes has reverted again to being supplied in a variety, however at an extra decreased degree.
The Sequence 2024-2 Class A cat bond notes that Armor Re II is about to subject will present American Coastal with simply over three-year’s of fully-collateralized Florida named storm reinsurance safety, working to the tip of December 2027, on an indemnity set off and per-occurrence foundation over that danger interval.
The now as much as $200 million of Sequence 2024-2 Class A notes that Armor Re II Ltd. include an preliminary anticipated lack of 0.59% and have been initially supplied to cat bond traders with unfold worth steering in a variety from 9% to 10%.
As we reported yesterday, the worth steering for these cat bond notes was lowered to the bottom-end of that vary, at 9%.
Now, on this newest replace, the worth steering is again to a variety once more, however at a lower-level of between 8.5% and 9%, we perceive.
As we mentioned earlier than, with this being a Florida wind solely disaster bond issuance, it ought to display to potential sponsors that reinsurance capability within the cat bond market is each considerable and well-priced presently, maybe encouraging extra to interrupt with their typical mid-year renewal custom and check out the capital markets at less-congested (for this peril) occasions.
You’ll be able to 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.
