The Texas Windstorm Insurance Association (TWIA), the residual market property insurer for the State of Texas, is now aiming to upsize its new catastrophe bond issuance to as much as $500 million, Artemis can report.The Texas Windstorm Insurance Association (TWIA) returned to the catastrophe bond market at mid-April with an initial target to secure at least $375 million of capital markets backed reinsurance from this Bluebonnet Re 2025-1 deal.Now, we’ve learned that TWIA’s target size for this new cat bond has been increased, with between $490 million and $500 million of reinsurance limit now sought.At the same time the targeted pricing for two of the Bluebonnet Re 2025-1 cat bond tranches has fallen, while the third tranche, which is the riskiest layer, has seen its price guidance narrowed in the upper-half of the initial guidance range, our sources said.

This will become the eleventh catastrophe bond sponsored by the Texas Windstorm Insurance Association (TWIA) that we have analysed and listed in our extensive .You can filter the Directory by sponsor to see only TWIA’s cat bonds.All three tranches of Bluebonnet Re 2025-1 cat bond notes will provide TWIA with reinsurance protection against Texas named storms and severe thunderstorms, on an indemnity trigger and annual aggregate basis, across three annual aggregate risk periods, running to maturity in June 2028.

What was a $150 million Class A tranche of notes are now targeted to be $200 million in size.These Class A notes have an initial expected loss of 1.84% and were first offered with spread price guidance of 6.5% to 7.25%, which we’re now told has been revised to a range of 5.75% to 6.5%.What was a $150 million Class B tranche of notes are also now targeting $200 million of protection for TWIA.

The Class B notes have an initial expected loss of 3.18% and were initially offered with spread price guidance of 9% to 10%, which has now been revised to a range of 8.5% to 9%.The final originally $75 million Class C tranche of notes are now targeted at between $90 million and $100 million in size.The Class C notes are riskier, having an initial expected loss of 4.5% and were initially offered with spread price guidance of 11% to 12%, which has now been revised to a new range of 11.5% to 12%, sources said.

As a result, it seems TWIA will secure more than its initially targeted reinsurance from its latest catastrophe bond, the first under the Bluebonnet Re Ltd.special purpose vehicle.TWIA .

Of its outstanding cat bonds, TWIA has $1.9 billion of cat bond coverage available for this wind season already, which alongside some multi-year reinsurance in-force TWIA also has in force means the insurer requires $1.727 billion in new reinsurance or cat bonds this year.With now as much as $500 million set to come from this Bluebonnet Re 2025-1 catastrophe bond, TWIA looks set to have at least $2.39 billion of cat bonds in-force for the 2025 hurricane season, perhaps as much as $2.4 billion should the upper size target be achieved.As a reminder, Bluebonnet Re Ltd.

is also being used by the Texas Fair Plan Association (TFPA) at the same time for its debut catastrophe bond under a different series number and you can read about the issuance for the Texas FAIR Plan in our Deal Directory.TWIA has been directly and remains one of the largest sponsors in our cat bond market sponsor leaderboard.Read all about this new catastrophe bond for the Texas Windstorm Insurance Association and every other cat bond transaction in the Artemis Deal Directory..

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