First-time catastrophe bond sponsor the Texas Farm Bureau Insurance Companies has secured a strong result with its debut catastrophe bond issuance , Artemis understands, with the upsized target for $255 million of reinsurance achieved and pricing finalised at the bottom of guidance.Texas Farm Bureau Insurance is the insurance operation of Texas’s largest farm organisation, the Texas Farm Bureau, a non-profit focused on its members from the agricultural community., seeking $200 million or more in named storm reinsurance protection through this Fish Pond Re 2024-1 cat bond.As we then , the target size for the cat bond was raised, with between $225 million and $255 million of reinsurance sought from this cat bond deal.

At the same time, we learned that the price guidance narrowed and was lowered towards the bottom-end.We are now told that the notes have been successfully priced and that Texas Farm Bureau has secured that upsized $255 million of reinsurance protection from the cat bond market.So, these now priced Fish Pond Re Ltd.

Class A tranche of Series 2024-1 catastrophe bond notes will provide Texas Farm Bureau Insurance and its subsidiaries with a confirmed $255 million of collateralized reinsurance against losses from named storms in the state of Texas, on an indemnity trigger and per-occurrence basis, over a three year term to the end of 2026.The $255 million of notes will have an initial expected loss of 0.112% and were first offered to cat bond investors with spread price guidance in a range from 4% to 4.5%.As we said, that price guidance was lowered and the range narrowed, to an updated 4% to 4.25% earlier this week.

Now, we’ve learned that the notes priced today, for a spread of 4% to be paid to investors.So that is very strong execution for a first-time cat bond sponsor, upsizing its debut Fish Pond Re cat bond issuance, while securing the reinsurance protection it provides at the lowest-end of initial spread guidance.You can read all about Texas Farm Bureau Insurance’s first catastrophe bond, this transaction, in our Deal Directory, where you can analyse details of almost every catastrophe bond ever issued..

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