Swiss Re targets low-end pricing for $65m Matterhorn Re 2025-2 retro cat bond

Swiss Re, the global reinsurance company, is now aiming for reduced pricing for its latest catastrophe bond sponsorship, with the still $65 million Matterhorn Re Ltd. (Series 2025-2) wind and quake retrocession cat bond transaction now seeing its price target reduced to the low-end of guidance, Artemis has learned.

Swiss Re ventured back to the catastrophe bond market for its second time this year in early July, having sponsored a $225 million Matterhorn Re Ltd. (Series 2025-1) issuance back in January that covered the same perils as this new Series 2025-2 deal.

The initial target with this Matterhorn Re 2025-2 cat bond, was for the reinsurer to secure $65 million or more in North American earthquake and named storm retrocessional protection from cat bond investors.

We understand that, as of this time, the size target has not been changed from the initial $65 million, but Swiss Re is looking to capitalise on investor appetites for risk by lowering the pricing for the cat bond notes.

This issuance will be the thirteenth takedown under Swiss Re’s Matterhorn Re catastrophe bond program, further extending the long list of cat bond transactions we have tracked that the reinsurance company has sponsored over the years.

Details of every Matterhorn Re cat bond and every other cat bond sponsored by Swiss Re since 1997 can be found by filtering our Deal Directory.

As things stand, Matterhorn Re Ltd. is still offering a single $65 million tranche of Series 2025-2 cat bond notes that will provide Swiss Re with retro protection for losses from North American earthquakes and named storms on an annual aggregate and weighted industry loss index trigger basis, running across three annual risk periods from the date of issuance to maturity in July 2028.

The still $65 million of Series 2025-2 Class A notes that Matterhorn Re Ltd. is offering come with an initial expected loss of 6.57% and were initially offered to investors with price guidance in a range from 12.25% to 13.25%.

We’re now told that the price guidance has been reduced and currently stands as a single figure at 12.25%, so the lowest-end of the initial spread guidance range.

With the catastrophe bond market issuance season drawing to its close, this is currently the only deal in the marketplace at this time, that we are aware of.

As a result, it stands to reason Swiss Re can capitalise on cat bond investor demand, as well as still attractive market conditions, to secure its latest catastrophe bond coverage at a lower price.

You can read all about this new catastrophe bond from Swiss Re, the Matterhorn Re Ltd. (Series 2025-2)  transaction, and every other cat bond ever issued in the Artemis Deal Directory.