Vermont Mutual Insurance Company has now secured the 25% upsized target for $250 million of fully-collateralized multi-peril reinsurance from its new catastrophe bond issuance, Artemis has learned.Vermont Mutual Insurance ventured back into the catastrophe bond market towards the end of May, initially targeting $200 million of reinsurance protection to cover multiple perils across northeast US states through its latest Baldwin Re deal.That original $200 million target would already have made this Vermont Mutual’s largest cat bond to date.But, and secure between the initial $200 million and as much as $250 million of reinsurance protection from the issuance.

At the same time the price guidance was lowered, to the bottom of the initial range.Now, we’re told that Vermont Mutual has achieved the larger offering size for its latest and third catastrophe bond sponsorship.The insurer sponsored its debut cat bond in 2021, securing $150 million in multi-peril reinsurance across a four year term with the  deal, a transaction that matures this June.

As a result, this new issuance will renew and upsize that reinsurance coverage, growing the participation of the capital markets in Vermont Mutual’s reinsurance tower.Vermont Mutual sponsored its second cat bond in 2023, a $100 million which remains in-force until mid-year 2027.As a reminder, you can read about all of .

With the upsizing of the Baldwin Re 2025-1 catastrophe bond now confirmed, Vermont Mutual will benefit from $250 million of catastrophe reinsurance that runs to the end of June 2029, on an indemnity and per-occurrence basis, with this new deal.The 2025-1 cat bond notes will provide reinsurance for the perils of US Northeast, named storm, earthquake, severe weather, and fire, while the covered area is Connecticut, Maine, Massachusetts, New Hampshire, New York, Rhode Island and Vermont.The now confirmed as $250 million of Baldwin Re Ltd.

Series 2025-1 Class A notes come with an initial expected loss of 1.1% and were first offered to cat bond investors with price guidance in a range from 3.75% to 4.25%.As we later reported, the price guidance was lowered to the bottom of that range, for a spread of 3.75% to be paid to investors, which is where the notes have now been priced, we understand.Meaning, the Baldwin Re 2025-1 cat bond notes come with a spread multiple-at-market of 3.41 times the expected loss.

For comparison, the 2023 cat bond had an initial base expected loss of 1.203% and priced for a spread of 4.5% with the multiple being 3.74 times EL, while the 2021 cat bond came with an initial expected loss of 0.91% and priced at 2.25% so a multiple of 2.47 times EL.As a result, the pricing of Vermont Mutual’s latest cat bond in 2025 seems a little softer than 2023, but nowhere near the soft pricing of 2021.You can read all about this new  catastrophe bond and every other cat bond deal in our extensive Artemis Deal Directory..

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