Having upsized the target for its debut wildfire catastrophe bond sponsorship to a significant $750 million of reinsurance, we’ve now learned that the California FAIR Plan Association is also seeking to reduce the risk interest spread it will pay for the issuance as well.The California FAIR Plan Association, the insurer of last resort for property owners needing basic fire insurance in the state, began its first-time catastrophe bond offering sponsorship back in November.Initially the target was to secure at least $250 million in reinsurance from this Golden Bear Re cat bond., with the offering size raised to between $350 million and $500 million, while the price guidance was narrowed towards the lower-end of the initial range.

for the California FAIR Plan, while at the same the price guidance fell to the bottom of the original range of spreads on offer.Now, we’re told that the size target remains to secure $750 million of fully-collateralized California wildfire reinsurance for the FAIR Plan, but the spread price guidance has been opened back into a range at a lower level, as even stronger price execution is sought for the sponsor.Now, Golden Bear Re Ltd.

is still offering investors a $750 million single tranche of Series 2026-1 Class A notes.Those notes will provide the California FAIR Plan with $750 million of capital markets backed reinsurance protection covering wildfire losses in the state of California on an indemnity trigger and per-occurrence basis, over a three year term running to the end of 2028.The Class A notes will come with an initial expected loss of 2.24%.

They were first offered to investors with spread price guidance in a range from 10.5% to 11.5%, which at the first update was revised to a lower range for a spread of between 10.5% and 11%, while in the next update the risk interest spread was fixed at 10.5%, so at the bottom of the initial range.Now, we’re told the still $750 million of Class A notes are being offered with revised price guidance for a risk interest spread of between 9.75% and 10.5%, so lower still and indicating a chance of even stronger execution for the sponsor.This Golden Bear Re 2025-1 catastrophe bond is set to become the largest pure ever issued, at more than triple the size of the previous largest, which was $200 million back in 2018.

This issuance is serving to demonstrate well the growing appetite in the catastrophe bond market for wildfire risks, while also underscoring the strong investor appetite for almost any cat bond opportunity at this time.This new deal will take .As we also reported last week, broker .

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