According to sources, the price guidance for the debut catastrophe bond issuance for sponsor Talanx has been narrowed towards the lower-half of the initial range that had been offered.Earlier this month, Talanx AG, the German insurance and reinsurance group, entered the catastrophe bond market with its debut transaction, seeking $100 million in parametric triggered, multi-year Latin America earthquake protection.We’re told that, at this stage, the target size of the Maschpark Re 2024-1 cat bond had not been changed.The goal still being to secure $100 million or more in parametric earthquake reinsurance protection.

As we explained, the focus of that coverage will be on Chile, but the parametric box extends into Peru, Bolivia, and Argentina so quakes occurring in those countries can also qualify under the terms of the notes.The still $100 million of Maschpark Re Ltd.Series 2024-1 Class A notes will provide Talanx with earthquake reinsurance across a three-year term, from January 2025 through the end of 2027, on a per-occurrence basis and based on a parametric trigger arrangement.

The $100 million of Maschpark Re 2024-1 cat bond notes will come with an initial expected loss of 0.92% and were first offered to cat bond investors with spread price guidance in a range from 3.5% to 4%.We’re now told that the price guidance has been narrowed at the lower-end of that initial range, with an updated spread guidances of between 3.5% and 3.75% now offered.As a result, it looks like Talanx could secure its debut catastrophe bond coverage priced within guidance, likely in the lower-half, once again reflecting elevated investor demand for new issues and the recent strong execution of deals being seen in the marketplace this quarter.

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