Canopius Group, the global specialty insurance and reinsurance underwriter, has successfully secured a renewal and upsizing for its catastrophe bond, with the new issuance priced to provide the targeted $125 million of protection at a spread fixed at the low-end of guidance, Artemis can report.As we reported in May, Canopius had returned to the cat bond market looking to renew and upsize on a soon to mature deal with its second sponsorship, initially targeting $125 million or more in protection.Canopius sponsored its debut cat bond almost three years ago, securing $75 million of US peak peril retrocessional reinsurance protection from a deal that matures later this month.So with this new Finca Re 2025-1 cat bond now priced and the details finalised, Canopius has secured $50 million more in protection, while the pricing is also far more attractive for the sponsor this time around.

Now finalised, this Finca Re 2025-1 cat bond will provide Canopius’ underwriting entities with roughly three years of protection against losses from US named storms and earthquakes (including Puerto Rico and the US Virgin Islands) on a territory-weighted industry loss trigger and annual aggregate basis.As we said in our previous article on this deal, named storm risk contributes the majority of the expected loss, with Florida making up around 45% of the total exposure for this new cat bond for Canopius.The now confirmed to be $125 million of Series 2025-1 Class A notes that Finca Re Ltd.

is issuing will have an initial base expected loss of 1.85% and were first offered to cat bond investors with price guidance of 5.25% to 5.75%.We now understand the notes have been priced to pay investors a spread of 5.25%, so at the bottom-end of the initial guidance range.As a result, these Finca Re 2025-1 catastrophe bond notes will pay investors a spread multiple of roughly 2.84 times the expected loss.

For comparison, the maturing Finca Re 2022-1 cat bond had an initial expected loss of 1.82% and priced to pay investors a spread of 7.75%, so provided them a spread multiple of 4.23 times EL.While that previous deal was a little more Florida weighted, in exposure terms, the pricing of the 2025-1 issuance drives home how much softer cat bond pricing is for industry-loss trigger bonds in 2025.Which means, for sponsor Canopius, this second visit to the catastrophe bond market will be deemed a success, in renewing its cat bond coverage at the larger $125 million size and at far more attractive pricing.

Read all about this new catastrophe bond transaction from Canopius Group and every other cat bond deal ever issued in the extensive Artemis Deal Directory..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.