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Louisiana Citizens Property Insurance Corporation, a non-profit residential and commercial property insurer for those unable to access private market insurance in the state, is now targeting $280 million of collateralized named storm reinsurance from its Bayou Re Ltd. (Series 2025-1) catastrophe bond issuance, while the spread guidance has narrowed from initial guidance, Artemis has learned.
Bayou Re Ltd. (Series 2025-1) is the eleventh cat bond sponsored by Louisiana Citizens that we have listed on our extensive Deal Directory.
Initially, the insurer had targeted $200 million of collateralized named storm reinsurance protection from its latest cat bond, but sources have told us that the target size has increased by 40% to $280 million.
At this size, it would be Louisiana Citizens largest cat bond ever, being $5 million larger than the $275 million Bayou Re 2024-1 issuance.
This is the third takedown of a cat bond under the Bayou Re Ltd. special purpose insurer (SPI) in Bermuda, and comes to market as the sponsor looks to continue the build-out of its multi-year hurricane and named storm reinsurance protection with the support of capital market investors.
Bayou Re Ltd. will offer and sell to investors a $280 million single Class A tranche of Series 2025-1 notes, with the proceeds used to collateralize a reinsurance agreement between the SPI issuer and Louisiana Citizens.
Structured using an indemnity trigger and on a per-occurrence basis, across a three-year term, the cat bond notes protect Louisiana Citizens with a source of reinsurance coverage against losses from named storms in the state.
The Series 2025-1 Class A notes Bayou Re Ltd. come with an initial attachment probability of 1.93%, an initial base expected loss of 1.69% and were initially being offered to cat bond funds and investors with spread price guidance in a range from 7.5% to 8%.
However, sources have confirmed that the spread guidance has tightened and the notes are now being offered to investors with a spread range of 7% to 7.5%, so falling below the upper-end of initial spread guidance.
You can read all about this new Bayou Re Ltd. (Series 2025-1) catastrophe bond and every other cat bond issued in the extensive Artemis Deal Directory.
Louisiana Citizens targets its largest cat bond with $280m Bayou Re 2025-1 as price guidance narrows was published by: www.Artemis.bm
Our catastrophe bond deal directory
Sign up for our free weekly email newsletter here.
This content is copyright to www.artemis.bm and should not appear anywhere else, or an infringement has occurred.
Louisiana Citizens Property Insurance Corporation, a non-profit residential and commercial property insurer for those unable to access private market insurance in the state, is now targeting $280 million of collateralized named storm reinsurance from its Bayou Re Ltd. (Series 2025-1) catastrophe bond issuance, while the spread guidance has narrowed from initial guidance, Artemis has learned.
Bayou Re Ltd. (Series 2025-1) is the eleventh cat bond sponsored by Louisiana Citizens that we have listed on our extensive Deal Directory.
Initially, the insurer had targeted $200 million of collateralized named storm reinsurance protection from its latest cat bond, but sources have told us that the target size has increased by 40% to $280 million.
At this size, it would be Louisiana Citizens largest cat bond ever, being $5 million larger than the $275 million Bayou Re 2024-1 issuance.
This is the third takedown of a cat bond under the Bayou Re Ltd. special purpose insurer (SPI) in Bermuda, and comes to market as the sponsor looks to continue the build-out of its multi-year hurricane and named storm reinsurance protection with the support of capital market investors.
Bayou Re Ltd. will offer and sell to investors a $280 million single Class A tranche of Series 2025-1 notes, with the proceeds used to collateralize a reinsurance agreement between the SPI issuer and Louisiana Citizens.
Structured using an indemnity trigger and on a per-occurrence basis, across a three-year term, the cat bond notes protect Louisiana Citizens with a source of reinsurance coverage against losses from named storms in the state.
The Series 2025-1 Class A notes Bayou Re Ltd. come with an initial attachment probability of 1.93%, an initial base expected loss of 1.69% and were initially being offered to cat bond funds and investors with spread price guidance in a range from 7.5% to 8%.
However, sources have confirmed that the spread guidance has tightened and the notes are now being offered to investors with a spread range of 7% to 7.5%, so falling below the upper-end of initial spread guidance.
You can read all about this new Bayou Re Ltd. (Series 2025-1) catastrophe bond and every other cat bond issued in the extensive Artemis Deal Directory.
Louisiana Citizens targets its largest cat bond with $280m Bayou Re 2025-1 as price guidance narrows was published by: www.Artemis.bm
Our catastrophe bond deal directory
Sign up for our free weekly email newsletter here.
