Tower Hill Insurance Exchange has increased the target size for what will be its second catastrophe bond, lifting the offering by 75% to provide $175 million in Florida named storm reinsurance protection.Tower Hill returned to the cat bond market for the second time in January, with a $100 million target size for this Winston Re 2025-1 issuance.That target has now been increased, to $175 million, while at the same time we’re told the price guidance has been lowered for the cat bond notes.A year ago, Tower Hill Insurance Exchange secured $400 million of reinsurance from its debut catastrophe bond, with that transaction doubling in size while marketing thanks to strong investor demand.

The Florida homeowners and commercial property insurance underwriter is aiming to build-out more capital markets backed reinsurance protection within its core Florida-focused tower, with this second Winston Re cat bond.Winston Re Ltd.will issue a single tranche of Series 2025-1 Class A notes to provide Tower Hill with reinsurance protection against named storm losses in Florida on an indemnity trigger and per-occurrence basis, running across a three hurricane season term, beginning June 2025 and with maturity due in February 2028.

The now $175 million tranche of Series 2025-1 Class A notes Winston Re is set to issue come with an initial base expected loss of 1.42% and were first being offered to investors with spread guidance in a range from 7% to 7.5%.We’re also told the price guidance range has been updated at a lower level, with a spread of between 6.5% and 7% being offered to investors.Which brings the indicative pricing down even lower year-on-year, compared to the 2024 issuance from Tower Hill.

As we explained in our last article, the Winston Re 2024-1 Class A tranche of notes had an initial expected loss of 1.56% and priced for a spread of 10.25%, so a considerably higher multiple compared to where these 2025-1 notes are now headed.You can read all about this in the extensive Artemis Deal Directory that includes details on almost every cat bond ever issued..All of our Artemis Live insurance-linked securities (ILS), catastrophe bonds and reinsurance can be accessed online.

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