Spain headquartered global reinsurance company Mapfre Re has returned to the catastrophe bond market for its second visit, looking to secure €125 million in annual aggregate European windstorm retrocession deal through its second issuance, Artemis has learned.We understand that this second cat bond deal for Mapfre Re has been in the market for a few days already and was initially sized at €100 million, but that it has already upsized to now target €125 million of retrocession for the reinsurer.Roughly one year ago, Mapfre Re secured $125 million in annual aggregate US named storm retrocession from the capital markets with its debut catastrophe bond.So it’s good to see the company returning and looking to utilise the cat bond structure to further augment its retrocession arrangements.

Mapfre Re is again using its Ireland based issuance vehicle Recoletos Re DAC for its second catastrophe bond.The initial target was to secure at least €100 million in annual aggregate European windstorm retrocession on an industry loss trigger basis.Recoletos Re DAC is set to issue a single tranche of Series 2025-1 Class A notes, that will be sold to cat bond investors and the proceeds be used to collateralize a retrocession agreement between the issuing vehicle and Mapfre Re.

We understand the annual aggregate, territory weighted and industry loss trigger based European windstorm coverage will protect Mapfre Re across three annual terms from December 2025 through till the end of November 2028.The notes feature a €4 billion franchise deductible we are told, meaning a European windstorm event must drive an industry loss as reported by PERILS of that amount or higher to qualify under the terms of the cat bond.The Class A notes come with an initial attachment probability of 2.67%, an initial expected loss of 2.31% and are being offered to investors with spread price guidance in a range from 4% to 4.5%, sources said.

Having begun as a €100 million issuance this Recoletos Re 2025-1 cat bond has already been upsized to a target for €125 million of retro for Mapfre Re.At the same time, the price guidance has been updated and lowered to a new range of 3.5% to 4%, we understand.Which shows Mapfre Re looking set to secure attractive execution for its second catastrophe bond, to upsize the amount of European windstorm retrocession it receives from this deal at what looks set to be risk spread pricing at the bottom-end of initial guidance or lower.

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