Swiss Re, the global reinsurer, has now secured its targeted $65 million in North American earthquake and named storm retrocession from its latest catastrophe bond, as the new Matterhorn Re Ltd. (Series 2025-2) issuance has been priced at the low-end of initial guidance.
The reinsurer then made its return to the catastrophe bond market for the second time this year in July, with the company looking to secure $65 million or more in North American earthquake and named storm retrocessional protection from cat bond investors with this new Matterhorn Re 2025-2 issuance.
In our first update on this deal, we reported that the size target had not been changed from the initial $65 million, however, Swiss Re was looking to capitalise on investor appetites for risk by lowering the pricing for the notes on this Matterhorn Re Series 2025-2 issuance.
Now we’re told, the targeted $65 million size has been achieved, while the pricing of the notes has been finalised at the bottom-end of initial guidance.
As we’ve previously explained, this issuance will be the thirteenth takedown under Swiss Re’s Matterhorn Re catastrophe bond program, further extending the list of cat bond transactions we have tracked that the reinsurer has sponsored over the years.
You can view the details of every Matterhorn Re cat bond and every other cat bond sponsored by Swiss Re since 1997 by filtering our Deal Directory.
Now priced, the confirmed $65 million Matterhorn Re Ltd. (Series 2025-2) cat bond 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 $65 million tranche of Series 2025-2 Class A notes that Matterhorn Re Ltd. is offering come with an initial expected loss of 6.57%.
The notes were initially offered to cat bond investors with spread price guidance in a range from 12.25% to 13.25%, which then reduced to the single figure of 12.25%, which we understand is where the notes have now been priced, so at the bottom-end of initial guidance.
This is a great result for Swiss Re, with the reinsurer managing to secure its second catastrophe bond this year, at its targeted size, and at low-end pricing.
With the catastrophe bond market issuance season drawing to its close, this Matterhorn Re 2025-2 deal appeared to be the only deal in the marketplace that we were aware of.
As a reminder, 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.
