RenaissanceRe has returned to the catastrophe bond market to sponsor a $200 million or greater issuance that will provide multi-peril catastrophe retrocessional reinsurance for its own portfolio and that of its flagship partner capital vehicle DaVinci Re, sources have told Artemis.This will become the seventh Mona Lisa Re Ltd.catastrophe bond to be sponsored by RenaissanceRe (RenRe), the Bermuda based reinsurance company and third-party capital manager.Once again, RenRe is seeking catastrophe retrocessional protection covering the same range of perils as its previous Mona Lisa Re cat bond deals.

We understand that Bermuda-based special purpose insurer (SPI) Mona Lisa Re Ltd.will offer two tranches of Series 2026-1 cat bond notes that will be issued and sold to investors.The proceeds of the sale of the currently $200 million of Series 2026-1 notes will be used to collateralize retrocessional reinsurance agreements between the issuer Mona Lisa Re Ltd.

and the ceding entities, which are RenaissanceRe itself and its third-party investor capitalised, equity-backed but balance-sheet sidecar-like company DaVinci Re.RenRe is looking to extend out the coverage from its Mona Lisa Re catastrophe bonds with this latest issue, with one tranche of notes set to provide retrocession across a five year term, while the other will provide it fours years of coverage, we understand.The cat bond notes will provide retrocessional reinsurance protection against losses caused by U.S., Puerto Rico, U.S.

Virgin Islands, and D.C.named storm and earthquake events, as well as protection for Canadian earthquakes as well.Both of the Series 2026-1 tranches of notes Mona Lisa Re is offering will provide annual aggregate retro reinsurance on an industry-loss trigger basis to RenRe and DaVinciRe, while there will be a franchise deductible of industry loss index points enforced for a catastrophe event to qualify, we are told.

A currently $100 million Class A tranche of notes are targeted to provide five years of retrocession running to the end of 2030.They will have an initial attachment probability of 3.12%, an initial expected loss of 2.82% and are being offered to cat bond investors with price guidance in a range from 5.75% to 6.5%, sources said.The Class B tranche are also currently $100 million in size, but riskier and so attach for a lower-level of aggregated industry losses, and their coverage will run across a four-year term to the end of 2029.

They will have an initial attachment probability of 7.98%, an initial expected loss of 6.74% and are being offered to cat bond investors with price guidance in a range from 12.25% to 13%, according to the information we have.Given the tighter spreads and softer pricing of catastrophe bond backed reinsurance coverage at this time, these notes are coming with indications of lower multiples-at-market than the last few years of Mona Lisa Re deals for RenRe.Which might present RenaissanceRe with an opportunity to upsize these latest tranches of cat bonds notes the company is sponsoring, so it will be interesting to see how investor appetites respond and where this new issuance prices for the reinsurer.

You can read all about this catastrophe bond from RenaissanceRe 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.