We can now bring you additional details on the recent $1.55 billion of catastrophe bond’s sponsored by US insurer State Farm.We’ve learned that there is a range of reinsurance protection provided by the four series of notes, the largest being a $550 million aggregate cat bond cover for the company.We broke the news last week that .In a follow-up we then , including two recently registered entities we’d reported on before.

With four series of notes issued using three SPI’s, it was always understood that State Farm will have secured differentiated coverage across at least some of the series it sponsored.When we first reported we said we knew that they all provided indemnity protection and reinsurance to cover losses from multiple US catastrophe and severe weather perils.Now, we have sourced additional details on each of the series of Merna Re catastrophe bonds that State Farm has sponsored in 2025, as a result of which we have now been able to separate them out into individual entries in our .

So we now have entries in our catastrophe bond Deal Directory for: We now know that a wide range of perils have indeed been covered under the reinsurance these four Merna Re 2025 catastrophe bond series provide.We’ve also learned that one of them provides what seems to be two sections of coverage for two distinct underwriting entities of State Farm (the Merna Re Companywide series), while the final and largest of the series provides a meaningful $550 million of aggregate multi-peril reinsurance protection for the company (the Merna Re Enterprise series).We have also sourced details of the expected losses for each series of notes, which alongside the spread pricing that we already knew enables a better understanding of the risk-return for cat bond investors from these Merna Re tranches.

It’s important to note that with these Merna Re catastrophe bonds relatively privately placed for State Farm to a group of cat bond funds and investors, on a closed group basis, details still aren’t as complete as for some other cat bonds we learn about.What details we have for the specifics of each series of cat bonds are below, as well as in the individual Deal Directory entries.Merna Re II Ltd.

(Series 2025-1) The first series of cat bond notes issued as part of State Farm’s record visit to the market in 2025 came under the Merna Re II Ltd.special purpose insurer (SPI) and are a $200 million Series 2025-1 issuance.This series of notes will provide State Farm with a $200 million roughly three year source of collateralized reinsurance protection against certain losses from Florida named storms and severe convective storms, we understand.

The reinsurance coverage from the Series 2025-1 notes will be on an indemnity trigger and per-occurrence basis over the term.We are told that the $200 million of Series 2025-1 notes issued by Merna Re II Ltd.come with an initial expected loss of 3% and they priced to pay investors a spread of 7.75%.

Merna Re II Ltd.(Series 2025-2) The second series of cat bond notes issued as part of State Farm’s record visit to the market came under the Merna Re II Ltd.special purpose insurer (SPI) and are a $300 million Series 2025-2 issuance.

This series of notes will provide State Farm with a $300 million roughly three year source of collateralized reinsurance protection against certain losses from Texas named storms, we understand.The reinsurance coverage from the Series 2025-2 notes will be on an indemnity trigger and per-occurrence basis over the term.We are told that the $300 million of Series 2025-2 notes issued by Merna Re II Ltd.

come with an initial expected loss of 3.88% and they priced to pay investors a spread of 8.75%.Merna Re Companywide Ltd.(Series 2025-3) The third series of cat bond notes issued as part of State Farm’s record visit to the market came under the recently registered Merna Re Companywide Ltd.

special purpose insurer (SPI) and are a $500 million Series 2025-3 issuance.This series of notes appear to provide State Farm with two sections of coverage, targeting differentiated protection for two of its underwriting companies.The Merna Re Companywide 2025-3 cat bond notes will provide a $500 million roughly three year source of collateralized reinsurance protection.

We are told these notes will provide State Farm Fire with US, DC (excl.CA, FL, TX) earthquake and named storm reinsurance protection, while also providing State Farm Lloyd’s with Texas named storm reinsurance.The specific focus on certain underwriting companies perhaps explains the name of this new SPI, in being Merna Re Companywide.

The reinsurance coverage from the Series 2025-3 notes will be on an indemnity trigger and per-occurrence basis over the term.We are told that the $500 million of Series 2025-3 notes issued by Merna Re Companywide Ltd.come with an initial expected loss of 2.44% and they priced to pay investors a spread of 7%.

Merna Re Enterprise Ltd.(Series 2025-4) The fourth series of cat bond notes issued as part of State Farm’s record visit to the market came under the recently registered Merna Re Enterprise Ltd.special purpose insurer (SPI) and are a $550 million Series 2025-4 issuance.

This series of notes are a frequency cover, designed to provide State Farm with annual aggregate reinsurance protection for multiple perils across most of the United States.The Merna Re Enterprise 2025-4 cat bond notes will provide a $550 million roughly three year source of collateralized aggregate reinsurance protection.We are told these notes will provide State Farm with annual aggregate reinsurance protection covering certain losses from US, DC (excl.

CA) windstorm, hail, tornado, hurricane, tropical cyclone, earthquake, and winter storm events.We understand there are qualifying thresholds in place, so deductibles or per-event retentions, but we do not have specific details of those.The reinsurance coverage from the Series 2025-4 notes will be on an indemnity trigger and annual aggregate basis over the term.

We are told that the $550 million of Series 2025-4 notes issued by Merna Re Enterprise Ltd.come with an initial expected loss of 1.92% and they priced to pay investors a spread of 7.75%.State Farm secured $450 million of annual aggregate reinsurance limit from its issuances.

So it’s encouraging to see the cat bond market supporting a larger issuance of $550 million of aggregate notes to secure more frequency protection for State Farm this year.This also reflects the increased appetite that both reinsurance and capital markets seem to have for well-structured aggregate deals this year, with some recovery seen in that segment and increased limits being secured at recent renewals.State farm has again secured particularly broad reinsurance coverage from the capital markets with its latest Merna Re 2025 catastrophe bonds.

Being the largest single sponsorship visit to the cat bond market seen so far, it’s testament to the insurers long-standing relationships with insurance-linked securities (ILS) investors and its sophisticated use of catastrophe bonds as a complement to its reinsurance arrangements..You can read all about State Farm’s $1.55 billion Merna Re 2025 catastrophe bond sponsorship in the , where we have split it into its individual series as: Merna Re II Ltd.

(Series 2025-1); ; Merna Re Companywide Ltd.(Series 2025-3); and ..All of our Artemis Live insurance-linked securities (ILS), catastrophe bonds and reinsurance can be accessed online.

Our can be subscribed to using the typical podcast services providers, including Apple, Google, Spotify and more.