Inigo Insurance is back in the catastrophe bond market and looking to sponsor what should become its fifth and largest cat bond issuance yet, with a $255 million initial target for this deal, while this also introduces a new peril to the program as well, Artemis has learned.Inigo, the London headquartered specialty insurance and reinsurance underwriter, had sponsored its first two catastrophe bonds in 2022, securing annual aggregate retrocession from the $115 million Montoya Re Ltd.(Series 2022-1) and the $110 million .Then Inigo returned in 2024 and secured a further $100 million in aggregate industry-loss based retrocession from its third cat bond, , before returning again at the start of this year for another $115 million Montoya Re Ltd.

(Series 2025-1) that also featured its first subsequent event coverage from a cat bond.The 2022-1 cat bond had already matured earlier this year, while the 2022-2 cat bond matures in April 2026, the 2024-1 in 2027 and the 2025-1 in 2028, so it is good to see Inigo returning to layer on more multi-year retrocessional reinsurance from the capital markets with this new deal.It’s also encouraging to learn from the sources that the re/insurer is expanding the role of cat bonds in its protection again, by introducing a new peril to the Montoya Re series, in Australian earthquake risks.

Inigo has $325 million of collateralized retrocessional reinsurance from the capital markets through its .This Montoya Re 2025-2 cat bond also sees Inigo looking to secure both annual aggregate and second and subsequent event occurrence retro reinsurance, we are told.Similar to all its previous cat bonds, Inigo’s Syndicate 1301 at Lloyd’s will be the ultimate beneficiary of the protection from this Montoya Re Series 2025-2 issuance.

Bermuda based special purpose insurer Montoya Re Ltd.is seeking to issue three tranches of Series 2025-2 notes, with an overall target size for the issuance of $255 million or greater.It’s the first cat bond for Inigo featuring three tranches of notes and also the largest by far of the now five it has sponsored.

All three tranches of Montoya Re 2025-2 cat bond notes will be sold to investors and the proceeds used to fully-collateralize a retrocessional reinsurance agreement between the special purpose insurer and Hannover Re, which will in turn enter into a reinsurance agreement with Inigo’s Syndicate 1301, we understand.The coverage will run across more than four years, from the start of 2026 through until the end of March 2030, we understand, with final maturity due in early April 2030.That also makes this the longest tenure cat bond ever sponsored by Inigo.

Each of the tranches of notes will provide Inigo with retrocessional reinsurance coverage for the peak perils of U.S.named storms and U.S.and Canada earthquakes with industry losses reported by PCS, while a Class B tranche will also cover Australian earthquake industry losses as reported by PERILS, we are told.

A $175 million tranche of Class A notes will provide annual aggregate protection on an industry loss trigger basis for U.S.named storms and U.S.and Canada earthquakes, with a franchise deductible of $10 billion per-event.

The Class A notes will have an initial attachment probability of 3.86%, an initial expected loss of 2.26% and they are being offered to investors with price guidance in a range from 4.75% to 5.5%.A $50 million tranche of Class B notes will provide annual aggregate protection on an industry loss trigger basis for U.S.named storms, U.S.

and Canada earthquakes and Australian earthquakes, with a franchise deductible of $10 billion per-event for the North American perils and $2.5 billion for the Australian quake events, we understand.The Class B notes are far riskier, attaching at a lower index point and will have an initial attachment probability of 8.59%, an initial expected loss of 7.19% and they are being offered to investors with price guidance in a range from 12.75% to 13.5%.A $30 million tranche of Class C notes will provide second and subsequent event cover on an occurrence and industry loss trigger basis for U.S.

named storms and U.S.and Canada earthquakes, sources said.The Class C notes will have an initial attachment probability of 2.8%, an initial expected loss of 2.38% and they are being offered to investors with price guidance in a range from 5.75% to 6.75%.

It’s good to see Inigo continuing to build-out its catastrophe bond backed retro reinsurance and to expand on its usefulness for the company, while also sourcing broad protection structures from the capital markets through these deals.Inigo’s cat bonds are more complex than some, given the use of second and subsequent event as well as aggregate structures.The company has become sophisticated in its use of cat bonds in just a few short year’s of sponsoring them.

You can read all about this new catastrophe bond, the second from Inigo Insurance, as wel as details on every other cat bond issued in our extensive Artemis Deal Directory..All of our Artemis Live insurance-linked securities (ILS), catastrophe bonds and reinsurance can be accessed online.Our can be subscribed to using the typical podcast services providers, including Apple, Google, Spotify and more.