Mapfre Re has increased the target size for the amount of retrocessional reinsurance it hopes to secure from its debut catastrophe bond sponsorship, with the issuance now aimed for $125m, while at the same time the price guidance has been lowered.Spain headquartered global reinsurance company Mapfre Re entered the catastrophe bond market for the first time in late November.Initially, the reinsurers’ target was to secure $100 million in annual aggregate US named storm retrocessional protection from the capital market.Now, Artemis has learned that the target size of this Recoletos Re cat bond has been increased in response to investor demand, while the spread guidance has been reduced.

This is typical of any industry-loss triggered catastrophe bond in the market this quarter, where sizes have typically increased and risk spreads been reduced, as new cat bonds are met by strong investor appetites.With this upsized target, Irish domiciled special purpose vehicle Recoletos Re DAC is looking to issue $125 million of notes, that will provide sponsor Mapfre Re with a collateralized source of annual aggregate and territory weighted industry-loss triggered retro protection over a three calendar year term to the end of 2027, covering the perils of named storms in the United States and DC.The now $125 million of Series 2024-1 Class A notes that Recoletos Re DAC is set to issue have an initial expected loss of 2.04% and were at first offered to investors with spread price guidance in a range from 5.5% to 6.25%.

We’re now told by sources that the spread guidance range has been updated at a lower level, with 5% to 5.5% now being offered.So it appears Mapfre Re could be heading for a strong execution of its first ever catastrophe bond, which for a first-time sponsor is would be an encouraging outcome.You can read all about this new catastrophe bond and view details on almost every other cat bond ever issued in our extensive Artemis Deal Directory..

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