Inigo Insurance has returned to the catastrophe bond market to sponsor its fourth issuance, with a $100 million initial target for this deal, which is the first cat bond from Inigo to feature multiple tranches, one being a new subsequent event cover, Artemis has learned.The London headquartered specialty insurance and reinsurance underwriter had sponsored its first two catastrophe bonds in 2022, securing $225 million in annual aggregate retrocession, then Inigo returned in 2024 and secured a further $100 million in aggregate industry-loss based retrocession from its third cat bond.As a result, Inigo currently has $325 million of collateralized retrocessional reinsurance from the capital markets through its .For 2025, we’re told Inigo Insurance is looking to build-on this success, expanding the coverage with its first multiple tranche issuance, one of which will provide second and subsequent event protection on a per-occurrence basis.

This will complement the annual aggregate protection from its three previous Montoya Re cat bonds and the first tranche of this 2025 issuance (also aggregate), meaning the company has broad peak peril retrocession covering an aggregation of frequency events, or two or more events above a certain size (through the subsequent event tranche).As with the previous three cat bonds, Inigo’s Syndicate 1301 at Lloyd’s will be the ultimate beneficiary of the coverage from this Montoya Re Series 2025-1 issuance.Montoya Re Ltd.

is seeking to issue two tranches of Series 2025-1 Class A notes, with an overall target size for the issuance of $100 million or greater.The two tranches of Montoya Re 2025-1 cat bond notes will be sold to investors and the proceeds used to fully-collateralize a retrocessional reinsurance agreement between the special purpose insurer and Hannover Re, who will in turn provide the reinsurance to Inigo’s Syndicate 1301, we understand.The coverage will run across slightly more than three years to the end of March 2028, we understand, with final maturity due in early April 2028.

Both of the tranches of notes will provide Inigo with retrocessional reinsurance coverage for the peak perils of U.S.named storm, as well as U.S.and Canada earthquake, the same as the last two deals, while both tranches will also utilise a PCS industry loss index trigger, we understand.

An $80 million tranche of Class A notes will provide annual aggregate protection and will have an initial attachment probability of 3.12%, an initial expected loss of 2.75%, while they are being offered to investors with price guidance in a range from 6% to 6.75%.We are told the annual aggregate Class A tranche will feature a franchise deductible of $10 billion per-event, for both the named storm and earthquake risks.A smaller $20 million Class B tranche of notes will provide per-occurrence based second and subsequent event protection, sources said, with an an initial attachment probability of 2.67%, an initial expected loss of 1.67%, while they are being offered to investors with price guidance in the same range from 6% to 6.75%.

Being a second and subsequent event cover, it seems this Class B tranche will require a catastrophe industry loss event of above a certain index level to occur, to then be activated to provide coverage for future events.It’s encouraging to see Inigo returning to the catastrophe bond market with an extended structure to provide it enhanced protection, demonstrating the firm’s appetite to embed the capital markets more deeply with its reinsurance arrangements.Previously the company had said that .

You can read all about this new catastrophe bond, the second from Inigo Insurance, as wel as details on every other cat bond issued in our extensive 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.