At final pricing, American Integrity Insurance Company upsized its new catastrophe bond again to provide $565 million of reinsurance protection making it by far the firm’s largest cat bond yet, while the notes all priced below their initial guidance, Artemis can report.American Integrity Insurance Company entered the catastrophe bond market for its latest deal sponsorship in early February looking to secure a multi-layered cat bond transaction that targeted as much as $325 million of fully-collateralized US named storm reinsurance across southeast states.The issuance was initially set to feature seven separate tranches of notes, but the riskiest Class E layer was removed from the issuance, while the target for the remaining six tranches of notes was raised to $550 million of collateralized catastrophe reinsurance for the insurer, .We then learned that the $550 million target size remained, .

Now, we’ve been told that there was a last-minute upsizing for one of the tranches of notes, which has taken the final issuance size to $565 million, making this by far American Integrity’s largest, while the pricing was finalised at the bottom-ends of reduced guidance for all six tranches of notes.It’s a very strong result for American Integrity and the insurer has benefitted from the strong execution being seen in the catastrophe bond market, as investor demand sees almost every issuance pricing down and most upsizing as well.To see how this transaction evolved, in size and price terms, over the marketing of the cat bond, do have a look at our Deal Directory entry for the catastrophe bond.

The Class A1 tranche of notes were finalised at $50 million in size (having been $65 million at the last update) and their price guidance was at the last update 8% to 9%, but priced at the low-end of 8%.The Class A2 tranche of notes were finalised at $100 million (having been $85 million at the last update) and their pricing which fell to 8% to 9% at the last update has also been fixed at the low-end of 8%.The Class B1 tranche of notes remained $50 million in size (most recently $60 million) and they last had price guidance of 9.75% to 10.75%, but have now priced at the low-end of 9.75%.

The Class B2 tranche of notes remained $100 million in size (previously $90 million), last having had price guidance of 9.75% to 10.75% and have also now priced at their low-end of 9.75%.The Class C tranche are the ones that upsized slightly, having been $150 million at the last update but now finalised at $165 million.Their price guidance was last between 12.25% to 12.75% and we’re told at final pricing it was fixed at the low-end of 12.25%.

The final and riskiest Class D tranche of notes remained $100 million in size, their last price guidance was 25.5% to 26%, which has now been finalised at the low-end again of 25.5%, sources said.As we said, a very strong result for American Integrity, securing a significant portion of its reinsurance tower from the catastrophe bond market this year thanks to cat bond investor support.In addition, with both two and three year duration notes issued, this new cat bond provides staggered maturities for the capital markets backed reinsurance (), which will benefit the company at renewals over the coming years.

You can read all about this new catastrophe bond and every cat bond deal in the 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.