Mapfre Re has successfully priced its second 144A catastrophe bond, securing the upsized €125 million of annual aggregate European windstorm retrocession through the issuance, while the spread was finalised at the low-end of reduced guidance, Artemis understands.As we reported yesterday, Spanish global reinsurance company Mapfre Re had been in the market for a few days with its second catastrophe bond sponsorship.Initially, the target size of this Recoletos Re 2025-1 cat bond was to secure €100 million of European windstorm protection for Mapfre Re, but as we said .Now, we’re told by sources that this cat bond deal was successfully priced late yesterday, to secure Mapfre Re its upsized target for aggregate windstorm retrocession covering Europe.

As a result, Ireland domiciled issuer Recoletos Re DAC will now issue €125 million of Series 2025-1 Class A notes.The notes will provide sponsor Mapfre Re with a source of fully-collateralized annual aggregate, territory weighted and industry loss trigger based European windstorm coverage over three annual terms from December 2025 through till the end of November 2028.The now confirmed as €125 million of Class A notes come with an initial expected loss of 2.31% and were initially offered to investors with spread price guidance in a range from 4% to 4.5%.

As we reported, that price guidance was updated and lowered to a range of 3.5% to 4% and we’re now told by sources that the notes priced to pay investors a risk interest spread of 3.5%, so the bottom end of the reduced guidance.A year ago, Mapfre Re secured $125 million in annual aggregate US named storm retrocession from the capital markets with its debut catastrophe bond.This new cat bond shows that Mapfre Re intends to utilise the cat bond structure to further augment its retrocession arrangements, including for a range of perils and regions.

Which bodes well for the prospects that the reinsurer becomes a regular repeat sponsor over-time.You can read all about this new catastrophe bond and view details on almost every other cat bond ever issued in our extensive Artemis Deal Directory..All of our Artemis Live insurance-linked securities (ILS), catastrophe bonds and reinsurance can be accessed online.

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