Florida’s Citizens Property Insurance Corporation is now targeting what could become the largest catastrophe bond issuance ever, as its target has lifted to between $1.4 billion and $1.525 billion of reinsurance from the new issuance, Artemis has learned.Florida Citizens previously sponsored the largest catastrophe bond ever issued, the $1.5 billion Everglades Re Ltd.(Series 2014-1) issuance.Just five catastrophe bond issuances have eclipsed the billion dollar mark before and now Florida Citizens is set to secure at least the joint-second largest ever, perhaps beating its own record and making this 2025-1 cat bond the biggest we’ve ever analysed and tracked in our .

, initially seeking $975 million in named storm reinsurance protection., Citizens target for the deal had increased with between $1.2 billion and $1.4 billion in named storm reinsurance limit sought from the deal, while at the same time pricing was updated and fell to the lower-end for some of the tranches.Now, we’ve learned that Citizens is clearly finding pricing of reinsurance in the catastrophe bond market attractive, as its target has lifted again, to now between $1.4 billion and $1.525 billion for this new Everglades Re II 2025-1 deal.

Bermuda based special purpose insurer (SPI) Everglades Re II Ltd.is aiming to issue four tranches of Series 2025-1 notes, each to collateralize a three-year source of reinsurance for Florida Citizens.As we previously reported, all four tranches of notes being offered to catastrophe bond funds and investors will provide the Floridian property insurer of last resort with multi-year annual aggregate named storm reinsurance for the state of Florida, on an indemnity trigger basis.

At this latest update, the Class A tranche of notes which have an initial expected loss of 1.56% are targeted at $450 million in size, with price guidance of 8.75%, the low-end of initial guidance.The Class B tranche of notes which have an initial expected loss of 1.90% are targeted at $400 million to $475 million in size, with price guidance of 9.75%, again the low-end of initial guidance.The Class C tranche of notes which have an initial expected loss of 2.32% are now targeted at between $350 million and $375 million in size, with price guidance of 11.25% which is in the lower-half of initial guidance.

Finally, the Class D tranche of notes which have an initial expected loss of 2.80% are now targeting between $200 million and $225 million in limit, with price guidance of 13%, which is at the mid-point of initial guidance.It’s worth looking at the Deal Directory entry for the catastrophe bond to see how Florida Citizens is moving its focus across tranches on offer, to secure the most reinsurance at the best possible price.Citizens already has to provide some of its reinsurance protection for the coming hurricane season.

Should this new cat bond deal achieve the upper-target now set, that would take Florida Citizens cat bond backed reinsurance protection to $3.125 billion, which would be the highest level of protection the insurer has ever had from the cat bond market at one time.You can read all about this new  catastrophe bond being sponsored by Florida’s Citizens Property Insurance Corporation and view details of more than 1,000 other cat bond issuances in the extensive Artemis Deal Directory..All of our Artemis Live insurance-linked securities (ILS), catastrophe bonds and reinsurance can be accessed online.

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