American Integrity Insurance is set to benefit from a roughly $13.2 million recovery from the original $75 million of catastrophe bond notes, with the remaining ~$61.8 million of principal now having its maturity extended by a further year, Artemis can report.Sources have told us that a notice of a recovery being made against the reinsurance these notes provide was lodged a few weeks ago now, but with the Integrity Re 2022-1 cat bond having been due to mature last week, now an extension notice has also been filed for the remaining principal.This catastrophe bond of American Integrity’s was first deemed on-risk by investors after hurricane Ian in September 2022.After the insurer updated its loss estimate for the hurricane in late 2023 the Integrity Re Series 2022-1 cat bond notes began to be marked down.

At first the notes were only discounted around 20% in the secondary market, but they were marked down around month seven or eight of 2024, to bids around the 50’s, then .At that time we were told the notes were being marked more aggressively than the latest UNL estimate for hurricane Ian implied, as the market appeared to anticipate further worsening of American Integrity’s hurricane Ian losses.American Integrity was particularly impacted by losses from claims associated with properties that had older roof structures after that hurricane, which resulted in the storm becoming its largest catastrophe loss event ever, we understand.

We understand that American Integrity has by now paid more than $1 billion in claims for losses caused by hurricane Ian, with a little further expected to be added before it closes that event down.The Integrity Re 202-1 catastrophe bond was issued in May 2022 and we understood that for a first-event to attach to the reinsurance coverage they provided a loss of just under $980 million would have been required.With now over $1 billion of paid losses from hurricane Ian and a projection that the total incurred from the storm could reach as much as $1.1 billion, these Integrity Re 2022-1 cat bond notes have now begun to pay out.

The $75 million of Integrity Re 2022-1 notes had the larger share of a $125 million layer of the American Integrity reinsurance tower at issuance, attaching just slightly under that $980 million figure.We’re now told that slightly under $13.2 million has been, or is set to be, paid to American Integrity as a partial reinsurance recovery under the notes.With the remaining roughly $61.8 million of principal now having its maturity extended out by one year, to June 6th 2026.

Should American Integrity’s ultimate net loss from hurricane Ian rise further then the insurer may make further reinsurance recoveries under these notes, we understand.The remaining $61.8 million of principal outstanding is marked for bids in the low double-digits, we understand, suggesting the cat bond market is implying further recoveries are likely.American Integrity also benefited from reinsurance recoveries under some of its other catastrophe bonds after hurricane Ian, demonstrating the effectiveness of their coverage.

It’s also notable that American Integrity has ...All of our Artemis Live insurance-linked securities (ILS), catastrophe bonds and reinsurance can be accessed online.

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