Everest Group has now secured its upsized target of $1 billion of collateralized retrocessional reinsurance limit from the capital markets from its two new and Kilimanjaro II Re Ltd.(Series 2025-2) catastrophe bond transactions, Artemis can report.It marks a more than doubling from the initial target, as Everest’s reinsurance entity, Everest Re, had returned to the catastrophe bond market from this two series and eight tranche issuance of Kilimanjaro Re II catastrophe bond notes.across the two series of catastrophe bond notes on offer, while at the same time the pricing had been lowered to sit at the bottom-end of initial guidance in every case.

Then, in our second update on this new cat bond coverage for Everest, , while the price guidance had been lowered slightly for every tranche, with the guidance back in a range that sat below the first range of spreads that had been offered.Now, we can report that Everest has achieved its upper-target, to secure the $1 billion of protection from these Kilimanjaro catastrophe bonds, while the spreads have been finalised below the initial price guidance ranges in every case.As a result, this becomes the third $1 billion plus visit to the catastrophe bond market in 2025 and Everest’s second time it has secured over a billion dollars of protection from the cat bond market in a single visit, having done so back in 2017.

While, these new Kilimanjaro II Re catastrophe bonds are the fourteenth and fifteenth series of notes sponsored by Everest Re, since the reinsurers first in 2014.These cat bonds are now set to provide Everest with $1 billion of 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, with the coverage on a regionally weighted industry-loss trigger basis, while each series includes two tranches of annual aggregate protection and two tranches of per-occurrence protection, so four aggregate and four occurrence tranches in all.

The four tranches of Series 2025-1 notes will give Everest Re coverage for four years to the end of June 2029, and the four tranches of Series 2025-2 notes will give it five years of protection through to the end of June 2030.The four year A-1 and five year A-2 notes are finalised at their largest sizes of $105 million each.These are annual aggregate in their coverage structure and come with an initial base expected loss of 1.1%.

They were first offered with price guidance in a range from 4% to 4.75%, which was updated to 4% after a first update, but then reverted back to a lower range from 3.75% to 4%.These tranches have now priced for a spread of 3.75%, so the lowest-end.The four year B-1 and five year B-2 notes now target are finalised at their largest sizes of $120 million each.

These are also annual aggregate in structure and come with an initial base expected loss of 2.84%.They were first offered with price guidance in a range from 6.5% to 7.25%, which was then fixed at 6.25% after a first update, but were reverted back to a lower range from 6% to 6.25%.  These tranches have now been priced for a spread of 6.25%, so still below the initial guidance that was offered.The four year C-1 and five year C-2 notes are finalised at their largest sizes of $170 million each.

These are per-occurrence in terms of coverage structure and come with an initial base expected loss of 1.52%.They were first offered with price guidance in a range from 4.25% to 5%, which was then fixed at 4.25% after a first update, but also reverted back to a lower range of 4% to 4.25%.These tranches have now priced at 4%, so the lowest level.

Finally, the four year D-1 and five year D-2 notes are finalised at their largest sizes of $105 million each.These are also per-occurrence in terms of structure and come with an initial base expected loss of 3.55%.They were initially offered with price guidance in a range from 6.75% to 7.5%, which was then fixed at 6.5% after a first update, but also opened back to a reduced range of 6.25% to 6.5%.

These tranches have now been priced at 6.5%, so still below the initial guidance.So there was some differentiation on pricing, with the lower-risk tranches securing the lowest guidance levels of spread, while the slightly higher risk tranches priced below initial guidance, but not quite at the lowest spreads that had been offered.With this new cat bond sponsorship, Everest has secured $450 million of protection across the four aggregate tranches of notes and $550 million across the four per-occurrence tranches, with $500 million of four-year cover across the Series 2025-1 notes and $500 million of five-year coverage from the Series 2025-2 notes.

Right now, prior to these new issuances settling, Everest has $830 million of catastrophe bond coverage outstanding.On the same day this new $1 billion of cat bond protection settles, a $300 million aggregate cat bond matures.Which means that, after that maturity and once these new Kilimanjaro 2025 catastrophe bonds are added, Everest will have $1.53 billion of cat bond backed retro reinsurance protection in-force, .

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.

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