Ariel Re, the Bermuda headquartered global reinsurer, has raised the target size for its latest and fifth catastrophe bond, , with the company now looking to secure up to $150 million of multi-peril retrocessional reinsurance, Artemis can report.As a reminder, this latest cat bond from Ariel Re marks the first time that the reinsurer has included wildfire risk as a covered peril under its Titania Re Ltd.series of deals.This will be the fifth Titania Re catastrophe bond to benefit Ariel Re since the firm made its debut in the market back in 2021.

initially looking to secure at least $125 million of multi-peril retrocessional reinsurance through this new cat bond deal.As with all of Ariel Re’s catastrophe bonds, once again the firm’s Lloyd’s Syndicate 1910 is the ceding company to this new deal, while Bermuda based special purpose insurer (SPI) Titania Re Ltd.will be the issuer.

As we’ve previously explained, where Ariel Re’s catastrophe bonds have all covered the peak perils of U.S.50 state, Puerto Rico, U.S.Virgin Islands, D.C.

and Canada named storms and earthquakes and this one does too, for the first time the reinsurer has also added wildfire risks to this new cat bond, seeking coverage for that peril across the U.S.and District of Columbia.Titania Re is aiming to issue two tranches of Series 2025-1 notes that will be sold to cat bond investors and the proceeds will collateralize the reinsurance agreements between the issuer and the ceding insurer Syndicate 1910.

Both tranches of Titania Re Series 2025-1 notes are set to provide Ariel Re with annual aggregate and industry loss triggered retro protection, over a four-year term and four risk periods.The target size across the two tranches of notes was initially for $125 million of retrocessional protection to be secured.Now, we’re told by sources that the size has been increased, with up to $150 million of notes now being offered to investors.

It’s important to note, we’re also told by sources that the targeted settlement date for this Titania Re 2025-1 cat bond issuance has been moved out to July 1st, which would make this catastrophe bond a third-quarter deal.We incorporate new cat bonds from their settlement date, being the time the notes are distributed.What was initially pitched as a $50 million or larger Class A tranche of Series 2025-1 notes are now being offered in a size range between the initial $50 million and up to $75 million in size, we understand.

The Class A notes have an initial attachment probability of 2.54%, an initial base expected loss of 2.25% and they were being offered to cat bond investors with price guidance in a range from 6.75% to 7.25%, but that guidance range has now been reduced to between 6.25% and 6.75%.Also being offered are a still $75 million Class B tranche of Series 2025-1 notes, which have an initial attachment probability of 7.35%, an initial base expected loss of 6.35% and they were originally being offered to cat bond investors with price guidance in a range from 15.75% to 16.5%.We’re now told that the spread guidance has been fixed at the single figure of 16.25%, positioning it towards the upper-end of the initial guidance range.

Should this new cat bond for Ariel Re settle in July it will not affect .That still stands as a possibility, as long as no other deals slip into Q3.Read all about this new  catastrophe bond from Ariel Re, as well as details on over 1,000 other cat bond transactions in the extensive Artemis Deal Directory..

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