Louisiana Citizens Property Insurance Corporation has now successfully secured $150 million of fully-collateralized named storm reinsurance through its sponsorship of the new catastrophe bond, pricing the notes below the initial guidance, Artemis can report.Louisiana Citizens, the non-profit residential and commercial property insurer for those unable to access private market insurance in the state, returned to the catastrophe bond market earlier this month.of multi-year named storm reinsurance protection to cover losses in its state of operation.for Bayou Re Ltd.

to offer and sell a $150 million single Class A tranche of Series 2026-1 notes to investors, but the price guidance for the risk interest spread the notes would pay had been lowered slightly.Now, sources have confirmed that Louisiana Citizens has successfully priced the notes below the initial guidance range, securing its targeted $150 million of capital markets backed reinsurance protection.This will become Louisiana Citizens twelfth catastrophe bond sponsorship and the seventh year in a row it has sponsored a new cat bond.

However, it’s worth noting that the last resort property insurer has $195 million of in-force cat bond coverage from a 2023-1 issuance scheduled to mature prior to hurricane season this year.As a result of which, its total cat bond coverage outstanding will decline slightly this year, it now seems..

With these new cat bond notes now priced and the coverage secured once the deal settles, Bayou Re Ltd.will issue and sell a $150 million single Class A tranche of Series 2026-1 notes to investors, to provide Louisiana Citizens with a capital markets backed and fully-collateralized source of reinsurance against named storm losses on an indemnity trigger and per-occurrence basis, across a three-year term to the end of April 2029.The $150 million of Series 2026-1 Class A cat bond notes that Bayou Re Ltd.

will issue have an initial base expected loss of 2.5% and were initially offered to cat bond funds and investors with price guidance in a range from 6.75% to 7.25%.As we reported, the price guidance was updated to a slightly lower range of 6.5% to 7% and we’re now told that the notes priced to pay investors an initial risk interest spread of 6.5%, so below the initial guidance range.Which indicates attractive execution for Louisiana Citizens from its 2026 visit to the catastrophe bond market, securing its targeted coverage at better than initially expected pricing.

The 2026-1 notes from Bayou Re have priced to pay investors a spread multiple-at-market of 2.6 times the expected loss.Last year’s 2025-1 issuance priced to pay a multiple of 3.6 times EL, so comparably higher.You can read all about this new catastrophe bond and every other cat bond issued in our extensive Artemis Deal Directory..

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