American Integrity Insurance Company’s new catastrophe bond remains at the upsized $550 million target, but with some adjustments to the sizes of individual tranches and lower price guidance across all notes on offer, Artemis understands.American Integrity Insurance Company ventured back into the catastrophe bond market in early February with aiming to sponsor a multi-layered cat bond transaction that targeted as much as $325 million of fully-collateralized US named storm reinsurance across southeast states.The issuance was at first set to feature seven separate tranches of notes, but then the riskiest Class E layer was removed from the issuance, while the target for the remaining six tranches of notes was raised to $550 million of collateralized catastrophe reinsurance for the insurer, .Now, sources have told Artemis that the $550 million target size remains, which will make this American Integrity’s largest cat bond yet.

But, there have been some adjustments to the sizes of certain tranches, while all six have seen their price guidance lowered further, presumably in response to investor demand and the strong execution being seen in the cat bond market for sponsors.Recall that, the six tranches of notes will provide American Integrity with multi-year and fully-collateralized named storm reinsurance protection across the states of Florida, Georgia, North Carolina and South Carolina, on an indemnity trigger and per-occurrence basis.Each tranche features different terms of coverage and as we explain in , there are varying degrees of inuring reinsurance and we’re told this cat bond is a kind of top and drop, or cascading structure, meaning as stated reinsurance is eroded at different rates the effective attachment points can differ, even where the risk metrics of the notes may appear similar to begin.

The latest sizes and pricing can be seen below, but to see how these have changed over the marketing of the cat bond do have a look at our Deal Directory entry for the catastrophe bond.The Class A1 tranche of notes are now $50 million in size (having been $65 million at the last update) and their price guidance has been updated to 8% to 9% (previously 9% to 10%).The Class A2 tranche of notes are now $100 million (having been $85 million at the last update) and their price guidance has also fallen to 8% to 9% (previously 9% to 10%).

The Class B1 tranche of notes are now $50 million in size (most recently $60 million) and their price guidance has now also been lowered to 9.75% to 10.75% (previously 10.75% to 11.5%).The Class B2 tranche of notes are now $100 million in size (previously $90 million) and their price guidance has also fallen to 9.75% to 10.75% (previously 10.75% to 11.5%).The Class C tranche of notes are still $150 million and their price guidance has again fallen to 12.25% to 12.75% (previously 12.75% to 13.25%), we understand.

The Class D tranche of notes are still $100 million in size and their price guidance has now been opened again at a range of 25.5% to 26% (having previously been fixed at 26%), sources said.American Integrity has been adjusting both size and pricing of its latest catastrophe bond to capitalise on investor demand at this time, making the most of the appetite of investors to lock-in its biggest capital markets backed reinsurance coverage in 144A format to-date.You can read all about this new catastrophe bond and every cat bond deal in the Artemis Deal Directory..

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