Utica National Insurance Group is now aiming to upsize its debut Genesee Street Re Ltd. (Series 2025-1) catastrophe bond issuance, with the target lifted to as much as $150 million in US named storm and severe thunderstorm reinsurance protection, Artemis has learned.
Utica National Insurance Group entered the catastrophe bond market for the first time earlier this month, with an initial target to secure $125 million in reinsurance from this first Genesee Street Re deal.We’re now told that the target size for this cat bond issuance has increased, with Utica National now seeking between $135 million and $150 million in fully-collateralized reinsurance protection from the capital markets from this Series 2025-1 issuance.
At the same time, we understand that the price guidance has been narrowed towards the lower-end of the initial range that was offered.
The now up to $150 million of Genesee Street Re 2025-1 catastrophe bond notes are designed to protect Utica National’s member companies with fully-collateralized reinsurance covering losses from the perils of named storms and severe thunderstorms, on an indemnity trigger and per-occurrence basis, across much of the US eastern states and running for an almost three-year term to the end of March 2028.
The now between $135 million and $150 million of Series 2025-1 Class A notes that Gensesee Street Re Ltd. is set to issue come with an initial expected loss of 0.61% and were initially offered to cat bond investors with price guidance in a range from 3% to 3.5%.
Now, sources have told us that the price guidance has been lowered and narrowed towards the bottom-end of that range, with updated spread price guidance of 3% to 3.25% now offered.
As a result, this looks set to be another strong cat bond deal execution for one of the latest first time sponsors to enter the market, providing the kind of experience that tends to result in sponsors coming back in future years.
You can read all about this new Genesee Street Re Ltd. (Series 2025-1) catastrophe bond and every other cat bond issued in the extensive Artemis Deal Directory.
