Massachusetts MPIUA lifts target for Mayflower Re 2025 cat bond to as much as $225m

The Massachusetts Property Insurance Underwriting Association (MPIUA) has now upsized its target for its latest catastrophe bond, increasing it to seek up to $225 million in multi-peril reinsurance protection from the capital markets from its new Mayflower Re Ltd. (Series 2025-1) issuance.

This new Mayflower Re 2025-1 issuance will become the sixth catastrophe bond sponsored by the Massachusetts Property Insurance Underwriting Association (MPIUA), a residual market property insurance association or FAIR Plan for the Commonwealth of Massachusetts.

As a reminder, you can read about all of the MPIUA’s catastrophe bonds in the extensive Artemis Deal Directory.

The MPIUA returned to the catastrophe bond market at the beginning of the month, initially looking to secure $150 million or more in multi-peril reinsurance protection from its latest cat bond deal, but strong investor demand has prompted two upsizes.

The MPIUA first increased its target to $200 million, and shortly after, raised it again to a range of $200 million to as much as $225 million in reinsurance now being sought.

At the same time, we’re told that the price guidance has been revised to a single target figure sitting in the middle of the original range.

Once settled, this Mayflower Re Series 2025-1 cat bond will provide the MPIUA with a multi-year source of indemnity based and annual aggregate reinsurance over a three-year term, running until the end of June 2028.

The now up to $225 million tranche of Series 2025-1 Class A notes will cover the MPIUA against certain losses from Massachusetts named storms, severe thunderstorms and winter storms, the same range of perils covered by previous cat bonds that benefited the insurer.

The now up to $225 million of Series 2025-1 Class A notes that Mayflower Re Ltd. is offering have an initial attachment probability of 1.052%, an initial base expected loss of 0.901%, and were initially being offered to investors with spread price guidance in a range from 3.25% to 3.75%.

We’re now told the price guidance has been revised to the single figure of 3.5%, so sitting in the middle of the initial range of spreads that were offered.

We’ll keep you updated as this Mayflower Re Ltd. (Series 2025-1) issuance progresses to final pricing and settlement.

You can read all about this new Mayflower Re Ltd. (Series 2025-1) catastrophe bond and every other cat bond transaction issued since the market began in the Artemis Deal Directory.