The Hanover Insurance Group, Inc.has achieved the upsized target for its new catastrophe bond sponsorship, with $200 million of multi-peril reinsurance limit now secured, while the notes priced at the middle of the lowered guidance range, Artemis understands.US primary insurer The Hanover came back the catastrophe bond market earlier in May, initially seeking $150 million of reinsurance protection from its third cat bond sponsorship under the Commonwealth Re structure.As we reported at the time, this third Commonwealth Re catastrophe bond sees The Hanover looking for expanded reinsurance protection compared to its first two cat bonds which had been only US wind focused, both through the inclusion of additional perils, but also expansion to become a US nationwide coverage with this new deal.

You can .As we then reported in our first update on this cat bond last week, , with up to $200 million of multi-peril reinsurance limit sought, while at the same time the price guidance for the notes was lowered.Now, sources have told us that the upsized target for $200 million of reinsurance limit has been secured, while the notes were priced within the revised guidance, which was below the initial range of spreads that had been offered, indicating strong execution for The Hanover.

So with all details now finalised, this Commonwealth Re 2025-1 catastrophe bond will provide The Hanover $200 million of indemnity and per-occurrence based reinsurance protection, covering the perils of US named storm, earthquake, severe thunderstorm, winter storm and wildfire, across three years from July 1st through to the end of June 2028.The now confirmed as $200 million tranche of Class A notes come with an initial base expected loss of 1.02% and were initially offered to investors with price guidance for a spread of between 4% and 4.5%.As we reported, the price guidance range was updated and lowered, to a revised range of a risk interest spread of between 3.5% and 4%.

Now, we’re told the initial risk interest spread has been priced at 3.75%, so the mid-point of the revised guidance and approximately 12% below the mid-point of the higher initial guidance range.So this is a strong result for The Hanover’s third catastrophe bond sponsorship and its first to cover multiple perils and regions, with the insurer securing one-third more in reinsurance than it had initially targeted, at around 12% better pricing.You can read all about this catastrophe bond from The Hanover and every cat bond transaction ever issued in the extensive .

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