Everest Re, the global reinsurer arm of Everest Group, is back in the catastrophe bond market with a two series issuance that seeks at least $450 million of collateralized retrocession split across four and five year terms, under and Kilimanjaro II Re Ltd.(Series 2025-2) transactions.As is always the case when a catastrophe bond sponsor brings an issuance to market featuring multiple series, there could be a chance only one gets completed, depending on investor response to these transactions.In this case, like many other multi-series cat bond offerings, the only difference between the two series are the term of coverage, with Kilimanjaro II Re 2025-1 notes targeting four years of coverage and Kilimanjaro II Re 2025-2 notes targeting five years of coverage for Everest Re.

We’re told that the initial goal is to secure $450 million or more in fully-collateralized retrocessional reinsurance from the capital markets, with the first size indications being for a certain amount of coverage to be secured across the 2025-1 and 2025-2 versions of the same lettered tranche, the only difference being their term.As a result, for now, we’ve split the $450 million target issuance size evenly across the two Series entries in our Deal Directory.But, as it becomes known how these different notes land with investors, we will update the sizes of each series issuance accordingly.

These latest Kilimanjaro Re catastrophe bonds will become the fourteenth and fifteenth series sponsored by Everest Re that we have tracked and listed in our Deal Directory, since the reinsurers first in 2014.We understand that Bermuda-based special purpose insurer (SPI) Kilimanjaro II Re Ltd.is aiming to issue four tranches of Series 2025-1 notes and four tranches of Series 2025-2 notes, that will all be sold to investors and the proceeds used to collateralize retrocessional reinsurance agreements with Everest Re.

The cat bond notes will fund coverage for Everest Re against certain losses from named storms and earthquakes that impact the United States, Puerto Rico, U.S.Virgin Islands, D.C., and Canada, the same perils as each of its recent cat bond deals.The retrocessional reinsurance protection will be on a regionally weighted industry-loss trigger basis for all four tranches of notes.

But we understand that each series will feature two tranches that will provide annual aggregate protection and two tranches that are structured to provide Everest Re with a source of per-occurrence protection, so four aggregate and four occurrence tranches in all (if both series issuances are completed).The four tranches of Series 2025-1 notes are designed to provide Everest Re with coverage for four years to the end of June 2029, while the four tranches of Series 2025-2 notes will provide five years of protection through to the end of June 2030, we are told.Everest Re has adopted this strategy with catastrophe bond sponsorships in the past, seeking different durations of coverage which helps in staggering maturities while layering coverage over longer terms.

The Series 2025-1 notes will provide four years of coverage across A-1, B-1, C-1, and D-1 tranches, while the Series 2025-2 notes will provide five years of coverage across A-2, B-2, C-2, and D-2 tranches.No individual size targets are set for every tranche, but we’re told there are size targets across the matching pairs of note classes with different durations.Details we know so far are below.

There is a target of $125 million across the four year A-1 and five year A-2 notes.These notes are annual aggregate in their coverage structure and come with an initial attachment probability of 1.61%, an initial base expected loss of 1.1% and they are being offered with price guidance in a range from 4% to 4.75%.There is a target of $100 million across the four year B-1 and five year B-2 notes.

These notes are also annual aggregate in structure and come with an initial attachment probability of 3.72%, an initial base expected loss of 2.84% and they are being offered with price guidance in a range from 6.5% to 7.25%.The aggregate note tranches feature a franchise deductible per-industry loss event, in order for an event to qualify under their terms, we have learned.Additionally, there is a target of $125 million across the four year C-1 and five year C-2 notes.

These notes are per-occurrence in terms of coverage structure and come with an initial attachment probability of 2.3%, an initial base expected loss of 1.52% and they are being offered with price guidance in a range from 4.25% to 5%.Finally, there is a target of $100 million across the four year D-1 and five year D-2 notes.These notes are also per-occurrence in terms of structure and come with an initial attachment probability of 5.49%, an initial base expected loss of 3.55% and they are being offered with price guidance in a range from 6.75% to 7.5%.

So with these tranches, across the two series of cat bonds Kilimanjaro II Re plans to issue for sponsor Everest Re, there are both four and five year aggregate and occurrence protections at different return-periods available, which would provide the reinsurer with strategically layered retrocessional reinsurance protection.As said, we’ve split these two series issuances into separate Deal Directory entries and for now split the targeted $450 million of limit evenly across them.As and when we receive any updated information on the sizes of individual tranches, we will update the entries accordingly.

It’s encouraging to see Everest Group returning to the catastrophe bond market and with an issuance that could grow to support a meaningful source of capital market backed retrocession for the company.Everest Re’s $300 million aggregate cat bond is scheduled to mature later this month, so this new issuance could replace at least some of that coverage, while also adding incremental occurrence retro limit protection for the company as well.Everest’s return signals that the company believes retrocession can be efficiently secured in the catastrophe bond market, as well as its ambition to lock-in and layer that protection across different terms.

You can read all about the and Kilimanjaro II Re Ltd.(Series 2025-2) catastrophe bond series from Everest Re and every cat bond transaction ever issued in the extensive .All of our Artemis Live insurance-linked securities (ILS), catastrophe bonds and reinsurance can be accessed online.

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