The two US Coastal named insurance companies administered by Cabrillo Coastal General Insurance Agency have secured their first catastrophe bond, finalising the issuance to provide the upsized target of $330 million of named storm reinsurance, with all three tranches of notes priced below their initial guidance ranges.It’s a strong result for one of the latest debut cat bond sponsors to enter the market in 2025, achieving more protection than had originally been targeted at pricing below initial expectations.The beneficiaries of the reinsurance protection from the Chartwell Re 2025-1 cat bond will be New York domiciled US Coastal Insurance Company and Florida domiciled US Coastal Property & Casualty Insurance Company, both of which are administered by hurricane exposed property insurance specialist Cabrillo Coastal General Insurance Agency, part of Cabrillo Holdings, LLC.The US Coastal named insurance companies initially seeking $310 million in named storm reinsurance coverage.

As we later , the target size for this first Chartwell Re catastrophe bond was increased, with up to $330 million of protection being sought, while the price guidance ranges were all updated indicating strong investor demand for the deal.Now, we understand that the $330 million upsized target for reinsurance protection for the US Coastal carriers has now been achieved, with the notes pricing below guidance.As a result, the three tranches of Chartwell Re Series 2025-1 notes will provide the two US Coastal insurers sponsoring the deal with a $425 million source of indemnity trigger, per-occurrence catastrophe reinsurance against named storm losses over a three year term running from June 1st this year.

The covered area is specifically Alabama, Florida, Mississippi, New Jersey, New York, Rhode Island, and Texas, but it is New York state that provides the greatest expected loss contribution in this case.The Class A tranche of notes upsized from $150 million to $170 million in size.These notes have an initial expected loss of 1.46% and were first offered with price guidance in a range from 6.25% to 6.75%, which was later lowered to 5.75% to 6.25% and we’re now told final pricing was for a spread of 6% to be paid, so below the initial range.

The Class B tranche of notes remained at $100 million in size.They have an initial expected loss of 2.36% and were first offered to cat bond investors with price guidance in a range from 7.5% to 8.25%, which was later lowered to 7.00% to 7.50% and we’re now told final pricing was for a spread of 7%, so again below the initial range.The $60 million Series 2025-1 Class C tranche of notes also did not change in size.

With an initial expected loss of 3.6%, these notes were first offered with price guidance in a range from 9.75% to 10.75%, which was later lowered to 9.25% to 9.75%, and we’re now told final pricing was for a spread of 9.25% to be paid, again below the initially offered range.As a result, the Class A notes saw their spread fall almost 8% from the initial mid-point of price guidance, the Class B notes fell by 11% and the Class C notes fell by almost 10%.Which represents a very strong result for a debut cat bond sponsor and this also demonstrates that diversifying US wind offerings have been pricing keenly, as we’ve seen with a number of deals that have their expected losses concentrated away from Florida or peak Gulf of Mexico states.

For the US Coastal insurers and their administrator Cabrillo, this first venture into the catastrophe bond market appears to have been very successful, with more reinsurance than initially sought now secured, while pricing well below the initially expected guidance ranges.As a reminder, you can read all about this new catastrophe bond and every other cat bond deal in the Artemis Deal Directory..All of our Artemis Live insurance-linked securities (ILS), catastrophe bonds and reinsurance can be accessed online.

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