Beazley, the London headquartered specialty insurance and reinsurance underwriter, remains on target to secure $100 million in reinsurance from its first ever Rule 144A property catastrophe bond, while pricing has moved towards the top-end for the issuance.Beazley’s Fuchsia 2023-1 is not only its first property cat bond, it is also the first to use the Lloyd’s owned ILS structure London Bridge 2 PCC Limited for its issuance.As a reminder, Beazley is also in the market for its first cyber cat bond, the deal, at the same time.For this property cat bond, the London Bridge 2 PCC Limited is still targeting issuance of a single $100 million, tranche of Series 2023-1 notes via a protected cell named Fuchsia 2023-1, we understand.

These Fuchsia 2023-1 Series 2023-1 notes will provide Beazley entities with a source of multi-year international property catastrophe reinsurance protection, covering named storm and earthquake events affecting the United States, Canada and certain parts of the Caribbean on an indemnity and per-occurrence over a three-year term.The still $100 million of Fuchsia 2023-1 cat bond notes come with an initial expected loss of 2.46% and were first marketed to investors with spread guidance in a range from 9% to 10%.We’re now told that spread guidance has been lifted to the top-end of that range, to pay investors a 10% spread.

Which still seems a reasonable multiple-at-market to pay, based on other recent issuance.You can read all about this catastrophe bond transaction in our Deal Directory, where you can analyse details of 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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