Everest Re, the global reinsurer arm of Everest Group, looks set to secure meaningful catastrophe bond backed reinsurance capacity as its target has now doubled to secure $900 million in collateralized retrocession from its new and Kilimanjaro II Re Ltd.(Series 2025-2) transactions, Artemis can report.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.The two series offering sees the sponsor looking to secure both 4 and 5 years of coverage, with the tenures being the only difference between the 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.We’re told that the latest update now suggests a $900 million target size across the Kilimanjaro II Re 2025-1 notes which target four years of coverage and Kilimanjaro II Re 2025-2 notes which target five years of coverage for Everest Re.However, no single tranche is expected to come in below $50 million in size, we understand, but individual tranche sizes have not been given.

At the same time, we are told that in every case the price guidance has been updated and now sits at the low-end of the initial guidance, with no pricing differentiation between the four and five year versions of notes.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.Now, with Kilimanjaro II Re Ltd.

targeting issuance of $900 million of notes, if that is achieved then Everest Re would benefit from 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, the same perils as each of its recent cat bond deals.The retrocessional reinsurance protection will be on a regionally weighted industry-loss trigger basis for all four tranches of notes, while each series of notes includes two tranches that will provide annual aggregate protection and two tranches that will provide per-occurrence protection, so four aggregate and four occurrence tranches in all.

While, 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 Series 2025-1 notes will provide four years of coverage across A-1, B-1, C-1, and D-1 tranches, while the Series 2025-2 notes will provide five years of coverage across A-2, B-2, C-2, and D-2 tranches.We’re told that targets have not been updated for each tranche, just that they will be a minimum of $50 million each, with an overall target now to secure $900 million of protection.

The four year A-1 and five year A-2 notes target $200 million between them, are annual aggregate in their coverage structure, come with an initial base expected loss of 1.1% and were first offered with price guidance in a range from 4% to 4.75%.We’re now told the price guidance for these notes sits at 4% after a first update.The four year B-1 and five year B-2 notes target $200 million between them, are also annual aggregate in structure, come with, an initial base expected loss of 2.84% and were first offered with price guidance in a range from 6.5% to 7.25%.

We’re now told the price guidance for these notes sits at 6.25% after a first update.The four year C-1 and five year C-2 notes target $300 million between them, are per-occurrence in terms of coverage structure, come with an initial base expected loss of 1.52% and were first offered with price guidance in a range from 4.25% to 5%.We’re now told the price guidance for these notes sits at 4.25% after a first update.

Finally, the four year D-1 and five year D-2 notes target $200 million between them, are also per-occurrence in terms of structure, come with an initial base expected loss of 3.55% and were initially offered with price guidance in a range from 6.75% to 7.5%.We’re now told the price guidance for these notes sits at 6.5% after a first update.So, Everest Re looks set to upsize this new catastrophe bond by as much as 100%, if investor appetite allows, while now targeting pricing for all tranches at the lowest-ends of their initial guidance ranges.

Everest Re’s $300 million aggregate cat bond will mature later this month, so it’s now encouraging to learn that this could more than replace that limit, while also adding occurrence retrocession for the sponsor as well.Everest’s appetite for upsizing this deals shows the company believes retrocession can be efficiently secured in the catastrophe bond market, and an ambition to lock-in and layer that protection across different terms of coverage.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 .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.