Global reinsurance firm Swiss Re is back in the catastrophe bond market seeking $150 million or more in North American earthquake and named storm retrocessional protection from capital market investors, through a transaction.This issuance will be the twelfth takedown under Swiss Re’s Matterhorn Re catastrophe bond program and adds to the long list of cat bond transactions we have tracked from the reinsurance company over the years..This Series 2025-1 issuance will be the first natural catastrophe bond under the Matterhorn Re program since 2022, with Swiss Re’s last deal having been .

For this latest issuance, Matterhorn Re Ltd.will look to issue two tranches of Series 2025-1 cat bond notes that will be sold to investors and the proceeds used to collateralize a retrocessional reinsurance agreement between the special purpose vehicle and Swiss Re, Artemis has learned.These retrocession agreements are designed to provide Swiss Re with $150 million or more in protection against losses from North American earthquakes and named storms, each on an annual aggregate and weighted industry loss index trigger basis.

The Matterhorn Re 2025-1 cat bond notes will provide Swiss Re with cover across three annual risk periods from the date of issuance, we are told.A $75 million Class A tranche of notes will provide Swiss Re with aggregate retro protection for US, DC and Canada earthquakes, and named storm losses affecting northeast US states and Canada.The Class A notes will come with an initial attachment point of 4.99%, an initial expected loss of 3.87% and are being offered to investors with price guidance in a range from 7.5% to 8.25%, we understand.

A $75 million Class B tranche of notes provide coverage across a slightly different area, being US, DC and Canada earthquakes, but then named storm losses affecting all 50 states of the US, DC and Canada.The Class B notes have an initial attachment point of 8.17%, an initial expected loss of 6% and are being offered to investors with price guidance in a range from 12.75% to 13.75%, sources said.There are a number of tranches of outstanding Matterhorn Re catastrophe bond notes that mature later in 2025, the first two being in March, then a further tranche in August.

As a result, it’s perhaps no surprise to see Swiss Re returning to replace some of this coverage.While this is also likely an opportune time to bring a new industry-index cat bond deal to market, given the strong placement execution seen recently.You can read all about this new catastrophe bond from Swiss Re, the transaction, and every other cat bond ever issued in the Artemis Deal Directory..

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