Everest Group is now aiming to secure as much as $1 billion of collateralized retrocessional reinsurance limit from the capital markets across its two new and Kilimanjaro II Re Ltd.(Series 2025-2) transactions, Artemis can report.Everest’s reinsurance entity, Everest Re, returned to the catastrophe bond market earlier this month, with from a two series and eight tranche issuance of Kilimanjaro Re II catastrophe bond notes.This two series offering sees the sponsor looking to secure both 4 and 5 year terms of coverage, with the tenures being the only difference between four tranches of Series 2025-1 cat bond notes and four tranches of Series 2025-2 cat bond notes, that Kilimanjaro II Re Ltd.

is offering to investors.which target four years of coverage and Kilimanjaro II Re 2025-2 notes which target five years of coverage for Everest Re.While at the same time the pricing had been lowered to sit at the bottom-end of initial guidance in every case.

Now, Artemis has learned that Everest could upsize this two-series catastrophe bond issuance further, with now up to $1 billion of limit being sought from catastrophe bond investors.While the price guidance has been lowered slightly for every tranche, with the guidance now back in a range that sits below the first range of spreads that had been offered.If Everest opts for the full $1 billion of targeted coverage from these two series of catastrophe bonds, this will become the third time this year a sponsor has secured a billion dollars of cat bond coverage in a single visit to the market.

These new Kilimanjaro II Re catastrophe bonds are set to become the fourteenth and fifteenth series of notes sponsored by Everest Re, since the reinsurers first in 2014.We’re told that, at the latest update, Everest’s new catastrophe bonds are pitched with target size ranges for each tranche, as well as new price guidance ranges.As a result, the target now ranges from $900 million to as much as $1 billion across all the tranches of notes.

At the upper-end, this will become Everest’s largest cat bond sponsorship effort ever.Recall that, these cat bonds will provide Everest with collateralized retrocessional reinsurance for losses from named storms and earthquakes that impact the United States, Puerto Rico, U.S.Virgin Islands, D.C., and Canada, with the coverage on a regionally weighted industry-loss trigger basis, while each series includes two tranches of annual aggregate protection and two tranches of per-occurrence protection, so four aggregate and four occurrence tranches in all.

The four tranches of Series 2025-1 notes will provide Everest Re with coverage for four years to the end of June 2029, and the four tranches of Series 2025-2 notes will provide five years of protection through to the end of June 2030.The four year A-1 and five year A-2 notes are now targeted at $100 million to $105 million each.These are annual aggregate in their coverage structure and come with an initial base expected loss of 1.1%.

They were first offered with price guidance in a range from 4% to 4.75%, which was updated to 4% after a first update, but we’re now told are back in a lower range from 3.75% to 4%.The four year B-1 and five year B-2 notes now target between $100 million and $120 million each.These are also annual aggregate in structure and come with an initial base expected loss of 2.84%.

They were first offered with price guidance in a range from 6.5% to 7.25%, which was then fixed at 6.25% after a first update, but are now also back in a lower range from 6% to 6.25%.The four year C-1 and five year C-2 notes now target from $150 million to $170 million each.These are per-occurrence in terms of coverage structure and come with an initial base expected loss of 1.52%.

They were first offered with price guidance in a range from 4.25% to 5%, which was then fixed at 4.25% after a first update, but are now also opened into a lower range of 4% to 4.25%.Finally, the four year D-1 and five year D-2 notes now target $100 million to $105 million each.These are also per-occurrence in terms of structure and come with an initial base expected loss of 3.55%.

They were initially offered with price guidance in a range from 6.75% to 7.5%, which was then fixed at 6.5% after a first update, but are now also opened into a reduced range of 6.25% to 6.5%.So, with this latest update to its new Kilimanjaro catastrophe bond sponsorships, Everest is seeking more retro protection, with as much as $1 billion of cat bond limit potentially set to be secured,  with pricing at the bottom of or below the initial guidance that was offered.Across the four aggregate tranches of notes the target is now for between $400 million and $450 million of protection, while the four per-occurrence tranches now target between $500 million and $550 million of cover.

It now seems assured that, with Everest Re’s $300 million aggregate cat bond maturing later this month, this looks set to be more than replaced, while also adding occurrence retrocession for the sponsor as well.You can read all about the and Kilimanjaro II Re Ltd.(Series 2025-2) catastrophe bond series from Everest Re and every cat bond transaction ever issued in the extensive .

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