Artemis has learned that Inigo Insurance, the London headquartered specialty insurance and reinsurance underwriter, is now seeking an upsized $115 million of protection from its new catastrophe bond deal, which is the first cat bond from Inigo to feature multiple tranches, one being a new subsequent event cover.Inigo Insurance made its return to the catastrophe bond market earlier this month, with the company looking to sponsor its fourth cat bond.The specialty insurance and reinsurance underwriter had sponsored its first two catastrophe bonds in 2022, securing $225 million in annual aggregate retrocession.Inigo then returned to the cat bond market in 2024 and secured a further $100 million in aggregate industry-loss based retrocession from its third cat bond.

Inigo currently has $325 million of collateralized retrocessional reinsurance from the capital markets through its For 2025, Inigo is aiming to build-on this success, expanding the coverage with its first multiple tranche issuance, one of which will provide second and subsequent event protection on a per-occurrence basis.This will complement the annual aggregate protection from Inigo’s three previous Montoya Re cat bonds and the first tranche of this 2025 issuance, which is also aggregate, means the company has broad peak peril retrocession from the capital markets covering an aggregation of frequency events, or two or more events above a certain size.The Class A tranche of Series 2025-1 notes were originally $80 million in size, but are now pitched at an upsized $85 million, we are told.

The Class A notes will provide annual aggregate protection and will have an initial attachment probability of 3.12%, an initial expected loss of 2.75%, and were first offered to investors with price guidance in a range from 6% to 6.75%.That price guidance has now dropped, with a new tighter range of 5.75% to 6%.We have also been told that the annual aggregate Class A tranche will feature a franchise deductible of $10 billion per-event, for both the named storm and earthquake risks.

The priced guidance for the smaller Class B tranche of Series 2025-1 notes were originally $20 million in size, but are now pitched at an upsized $30 million, sources said.The tranche of Class B notes will provide per-occurrence based second and subsequent event protection, with an an initial attachment probability of 2.67%, an initial expected loss of 1.67%, and were first being offered to investors with price guidance in the same range from 6% to 6.75%.That price guidance has now also dropped, with a new tighter range of 5.75% to 6%.

Being a second and subsequent event cover, it also appears that this Class B tranche of notes will require a catastrophe industry loss event of above a certain index level to occur, to then be activated to provide coverage for future events.As a reminder, you can read about this new catastrophe bond, the second from Inigo Insurance, as well 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.