American Integrity Insurance Company is now seeking lower pricing for its latest catastrophe bond, while the target size of the issuance has been adjusted again to between $240 million and $260 million of named storm reinsurance, Artemis has learned.American Integrity Insurance ventured back to the catastrophe bond market at the start of February with an initial target to secure at least $175 million of fully-collateralized US named storm reinsurance for losses across southeastern states from this issuance.As we’d highlighted, this transaction features a one of the highest-risk tranches of cat bond notes ever seen and it appears investors have been supportive, as that higher-risk, lower-layer of the reinsurance tower remains in the offering, still coming with one of the highest spreads ever seen in the cat bond market although the guidance has even been reduced for that tranche now.In our first update related to this Integrity Re III Series 2026-1 cat bond issuance, , with between $215 million and $275 million of notes offered across the four tranches, while price guidance was reduced.

Now, we’re told the size target has adjusted further, with the issuance now aiming to secure American Integrity between $240 million and $260 million of fully-collateralized and multi-year named storm reinsurance protection, while the price guidance has been further adjusted downwards again.This new catastrophe bond from American Integrity Insurance will be the company’s ninth in the Integrity Re series of deals..

So, Integrity Re III Ltd.is now aiming to issue between $240 million and $260 million of notes across the four tranches, to 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 over a three year term.The Class A tranche of notes were first $75 million, then updated to from there to $100 million in size.

We’re now told this tranche is targeted at between $85 million and $90 million.The Class A notes come with an initial base expected loss of 1.38% and were first offered to cat bond investors with price guidance in a range from 8% to 9%, which was first lowered to between 7% and 8%.The latest price guidance is lower still, at 6.75% to 7%, we understand.

The Class B tranche were first $50 million, then offered at up to $75 million in size.We’re now told the target is for between $60 million and $70 million of notes to be issued.The Class B notes come with an initial base expected loss of 3.39% and were first offered to cat bond investors with price guidance in a range from 12% to 13%, which was first lowered to between 11% and 12%.

Now, the price guidance has been reduced further, to a range of 10.75% to 11%.The Class C tranche of notes still remain at their initial $50 million size.The Class C notes come with an initial base expected loss of 4.56% and were first offered to cat bond investors with price guidance in a range from 17% to 19%, which was first lowered to between 16.5% and 17.5%.

Now, the guidance for this tranche has been reduced again to between 16.25% and 16.5%, sources said.The final Class D tranche of notes were first sized at between $40 million and $50 million, but this has been updated to between $45 million and $50 million, we are told.The Class D notes come with an initial base expected loss of 11.96%, one of the riskiest layers ever seen in the 144A cat bond market and the first price guidance we saw was for a spread of between 34% and 35%, but this has now been updated at a lower 32% to 34%, we understand.

All of which indicates American Integrity Insurance is strategically adjusting the pricing and sizes of the four tranches in search of the most efficient and effective outcome, responding to investor feedback and their appetites for risk.It’s a further demonstration that higher-risk and higher-spread catastrophe bond opportunities are appealing in the market, showing that the cat bond investor base can support sponsors needs for reinsurance in the lower-layers of their towers.You can read all about this new catastrophe bond and every cat bond deal in the Artemis Deal Directory..

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