Artemis has learned that GeoVera Insurance Holdings, Ltd. is now targeting as much as $400 million in earthquake reinsurance protection from capital market investors through its latest Veraison Re Ltd. (Series 2025-1) catastrophe bond.
As we reported earlier this month, GeoVera Insurance Holdings, Ltd ventured back to the cat bond market with an initial goal to secure $275 million of earthquake reinsurance protection, from what is ready to change into the corporate’s third Veraison Re cat bond.
We’ve got now been told that the corporate is trying to upsize its latest catastrophe bond, the Veraison Re Ltd. (Series 2025-1), with between $350 million and $400 million of notes expected to be issued through this cat bond deal.
Alongside the goal size for this Veraison Re 2025-1 cat bond being increased, we’ve also been told that the worth guidance range has been lowered for every of the 2 tranches of notes on offer.
The insurer had previously sponsored two Veraison Re catastrophe bonds, one in 2023 and one in 2024, that together provide it $325 million of collateralized US earthquake reinsurance protection.
With GeoVera now trying to upsize this Veraison Re Ltd. (Series 2025-1) cat bond to be between $350 to $400 million, it looks set to be its biggest cat bond within the Veraison Re series to date.
GeoVera is again using its Bermuda licensed special purpose insurer (SPI) Veraison Re Ltd. for this Series 2025-1 catastrophe bond issuance.
Veraison Re will issue two tranches of notes, that will likely be sold to cat bond investors and the proceeds used to collateralize reinsurance agreements between the SPI and GeoVera.
What was a $200 million tranche of Series 2025-1 Class A notes at the moment are targeted to be between $250 million to $275 million in size, sources have said.
The Class A notes will include an initial attachment probability of 1.79%, an initial expected lack of 1.43%, and were first being offered to investors with price guidance in a variety from 4% to 4.5%, but we’re told the updated guidance is for a ramification of between 3.50% to 4.00%.
What was a $75 million tranche of Class B notes at the moment are targeted to be between $100 million and $125 million, we’re told.
The Class B notes have an initial attachment probability of two.99%, an initial expected lack of 2.57%, and were first being offered to investors with price guidance in a variety from 6% to six.75%, but this has also fallen to an updated range of 5.50% to six.00%.
In consequence, GeoVera looks set to profit from strong demand for its latest catastrophe bond, with the deal looking set to extend from the initial targeted size, while pricing could wind up coming in on the low-end of initial guidance or below.
You possibly can read all about this Veraison Re Ltd. (Series 2025-1) within the extensive Artemis Deal Directory that features details on almost every cat bond ever issued.