Utica National Insurance Group has now successfully priced its debut Genesee Street Re Ltd. (Series 2025-1) catastrophe bond to provide a 21% upsized $150 million in US named storm and severe thunderstorm reinsurance protection, with the spread finalised at the mid-point of guidance, Artemis understand.
As a result, Utica National becomes the latest first-time cat bond sponsor to successfully secure more reinsurance limit than the insurer had initially targeted in 2025.Utica National Insurance Group ventured into the catastrophe bond market for its debut sponsorship earlier this month, with an initial target to secure $125 million in reinsurance from its first Genesee Street Re deal.
As we then reported in an update, the target size for this cat bond issuance had increased, with Utica National targeting between $135 million and $150 million in fully-collateralized reinsurance, while at the same time the price guidance was narrowed towards the lower-end of the initial range.
Now, sources have told us that the upper-target for $150 million in capital markets backed reinsurance has now been secured by Utica National, so an increase of 21% over the marketing of the deal, with its debut Genesee Street Re cat bond now priced at the mid-point of initial spread guidance.
As a result, the Genesee Street Re 2025-1 catastrophe bond will provide Utica National’s member companies with a $150 million fully-collateralized source of reinsurance from the capital markets.
The reinsurance will protect the companies against certain 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 confirmed to be $150 million of Series 2025-1 Class A notes that Gensesee Street Re Ltd. is set to issue have an initial expected loss of 0.61%.
The notes were initially offered to cat bond investors with price guidance in a range from 3% to 3.5%, which at the first update was lowered and narrowed to between 3% and 3.25%, and we’re now told final pricing was at 3.25%, so at the initial mid-point.
As a result, another first-time catastrophe bond sponsor has secured more than its initially targeted reinsurance from the capital markets through its debut deal, a strong result for Utica National.
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.
