The Massachusetts Property Insurance Underwriting Association (MPIUA) has now secured its latest catastrophe bond at the 50% upsized target to source $225 million of multi-peril reinsurance protection from the capital markets with its new issuance.The MPIUA returned to the catastrophe bond market at the beginning of May, at first looking to secure $150 million or more in multi-peril reinsurance protection from the deal, but strong investor demand then prompted the target size to be increased twice.The MPIUA first increased the target size for its latest cat bond to $200 million, shortly after .Now, we’ve been told that the MPIUA has secured the top-end target for $225 million of reinsurance from its latest catastrophe bond deal, a 50% increase on the initial launch size.

This new Mayflower Re 2025-1 issuance will become the sixth catastrophe bond sponsored by the Massachusetts Property Insurance Underwriting Association (MPIUA), the residual market property insurance association or FAIR Plan for the Commonwealth of Massachusetts.As a reminder, The notes have now been priced for this latest cat bond issuance for the MPIUA, confirming that the Mayflower Re Series 2025-1 cat bond will provide it with a multi-year source of indemnity based and annual aggregate reinsurance over a three-year term, running until the end of June 2028.The now confirmed to be $225 million tranche of Series 2025-1 Class A notes will cover the MPIUA against certain losses from Massachusetts named storms, severe thunderstorms and winter storms, the same range of perils covered by previous cat bonds that benefited the insurer.

The notes come with an initial base expected loss of 0.901%, and were initially being offered to investors with spread price guidance in a range from 3.25% to 3.75%, but that guidance was later revised to the single figure of 3.5%, which is where we’re now told final pricing was achieved, so at the mid-point of the spread guidance range.The MPIUA has two outstanding catastrophe bonds still in-force from issuances in 2023 and 2024, meaning it already has $350 million in cat bond risk capital outstanding even before this new cat bond.With neither of the two outstanding cat bonds scheduled to mature this year, with this additional $225 million cat bond now finalised it means the MPIUA will go into the next annual reinsurance period with $575 million of capital markets backed risk transfer from the catastrophe bond market.

You can read all about this new catastrophe bond and every other cat bond transaction issued since the market began in the Artemis Deal Directory..All of our Artemis Live insurance-linked securities (ILS), catastrophe bonds and reinsurance can be accessed online.Our can be subscribed to using the typical podcast services providers, including Apple, Google, Spotify and more.