Germania Insurance has now secured the targeted $100 million of multi-peril catastrophe reinsurance from its debut catastrophe bond sponsorship, with the notes now priced to pay a risk interest spread that is below the initial guidance range, Artemis has learned from sources.The largest farm mutual insurance company in Texas, Germania Insurance (or Germania Farm Mutual Insurance Association as it is often better known) began its debut catastrophe bond sponsorship journey earlier this month, with an initial target to secure $100 million of fully-collateralized catastrophe reinsurance protection from the capital markets with this first Handshake Re deal.As we then , the $100 million goal for protection did not change but the price guidance was lowered as the sponsor targeted strong price execution for its first cat bond transaction.Now, we are told that Germania Insurance has successfully priced its first cat bond today, securing the targeted reinsurance at below guidance pricing.

As a result, Handshake Re Ltd.will now issue a $100 million Class A tranche of Series 2025-1 notes.These notes will provide Germania Insurance with a four year source of fully-collateralized reinsurance protection covering losses from named storms, severe thunderstorms and winter storms in the state of Texas, on an indemnity trigger and per-occurrence basis.

The Class A notes come with an initial expected loss of 2.11% and were first offered to cat bond investors with price guidance for a spread of between 4.75% and 5.25%.That price guidance was revised to a narrower and lower range of between 4.5% and 4.75% and we’re now told final pricing was for an initial risk interest spread of 4.5% to be paid.Meaning that Germania Insurance has secured attractive price execution for its debut 144A catastrophe bond sponsorship, a positive signal for other first-time market entrants and reflecting market conditions.

You can read all about this catastrophe bond from first time sponsor Germania Insurance and 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.Our can be subscribed to using the typical podcast services providers, including Apple, Google, Spotify and more.