American Family Mutual Insurance Company (AmFam) is looking to upsize its latest catastrophe bond, with the target raised to $200 million of multi-peril US catastrophe reinsurance protection from this   cat bond issuance, Artemis understands from sources.American Family Mutual Insurance Company (AmFam) has become a very consistent sponsor of catastrophe bonds, with this its sixth sponsorship in as many years and the sixth in the Four Lakes Re Ltd.series of deals., initially targeting $150 million of fully-collateralized multi-peril catastrophe reinsurance from the capital markets with this Series 2025-1 issuance.

Now, we’re told that the target size of the this Four Lakes Re 2025-1 cat bond issuance has been increased by one-third, with AmFam now aiming to secure $200 million of protection from the deal.At the same time, unsurprisingly given the state of cat bond pricing, the guidance on the risk interest spreads to be paid has been reduced.As a result, with this cat bond AmFam is now seeking $200 million of reinsurance protection against losses caused by US named storm, earthquake, severe thunderstorm, winter storm and wildfire events, on an indemnity trigger and per-occurrence basis, running from January 2026 to the end of December 2028, so a three year term.

What was a $50 million tranche of Series 2025-1 Class A notes are now offered at $75 million in size.The Class A notes come with an initial expected loss of 0.85% and were first offered to investors with price guidance for a risk interest spread in a range from 3.75% to 4.5%, but that has now been lowered to a revised range of 3.25% to 3.75%, we understand.What was a $100 million Class B tranche of notes are now offered at $125 million in size.

The Class B notes are riskier coming with an initial expected loss of 2.91% and were first offered with risk interest spread price guidance in a range from 6.5% to 7.5%, but that has also been reduced to a revised range of 6% to 6.5%.AmFam is on-track to secure some of the lowest priced catastrophe bond backed reinsurance protection in the history of the Four Lakes Re cat bond deals, with spread indications suggesting very attractive execution for the sponsor.You can read all about this new catastrophe bond from American Family in the Artemis Deal Directory..

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