Further reflecting the high-demand for new catastrophe bond issues at this time, the issuance for sponsor American Coastal Insurance Company (AmCoastal) has increased in size again, with now up to $200 million in Florida named storm reinsurance protection sought.When AmCoastal Insurance came to market with this new Armor Re II 2024-2 cat bond in November, the initial target size was to secure $100 million of reinsurance.But, , with between $100 million and $150 million of reinsurance then being sought.Now, in a second update on the deal, we’re told that the size target has been increased again, with now between $150 million and $200 million of reinsurance being the target for AmCoastal Insurance.

At the same time, we’re also told that the price guidance for the now up to $200 million of Armor Re II 2024-2 cat bond notes has reverted back to being offered in a range, but at a further reduced level.The Series 2024-2 Class A cat bond notes that Armor Re II is set to issue will provide American Coastal with just over three-year’s of fully-collateralized Florida named storm reinsurance protection, running to the end of December 2027, on an indemnity trigger and per-occurrence basis over that risk period.The now up to $200 million of Series 2024-2 Class A notes that Armor Re II Ltd.

come with an initial expected loss of 0.59% and were initially offered to cat bond investors with spread price guidance in a range from 9% to 10%.As we reported yesterday, the price guidance for these cat bond notes was lowered to the bottom-end of that range, at 9%.Now, in this latest update, the price guidance is back to a range again, but at a lower-level of between 8.5% and 9%, we understand.

As we said before, with this being a Florida wind only catastrophe bond issuance, it should demonstrate to potential sponsors that reinsurance capacity in the cat bond market is both abundant and well-priced at this time, perhaps encouraging more to break with their typical mid-year renewal tradition and try out the capital markets at less-congested (for this peril) times.You can read all about this new catastrophe bond transaction and every other cat bond ever issued in our Artemis Deal Directory..All of our Artemis Live insurance-linked securities (ILS), catastrophe bonds and reinsurance can be accessed online.

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