Nakama Re Ltd.

Zenkyoren, the Japanese National Mutual Insurance Federation of Agricultural Cooperatives, has now secured its new Japanese earthquake catastrophe bond Nakama Re Ltd. (Series 2023-1) to provide $225 million of reinsurance protection, while pricing settled at a reduced level compared to guidance.

Zenkyoren, the Japanese National Mutual Insurance Federation of Agricultural Cooperatives, has increased the target size of its new Japanese earthquake catastrophe bond Nakama Re Ltd. (Series 2023-1) to as much as $275 million.

Zenkyoren, one of the largest catastrophe reinsurance buyers in the world, has returned to the cat bond market for what will be its thirteenth issuance we have tracked, seeking $200 million or more in collateralized Japanese earthquake reinsurance through a Nakama Re Ltd. (Series 2023-1) deal.

The latest catastrophe bond to be sponsored by Zenkyoren (the Japanese National Mutual Insurance Federation of Agricultural Cooperatives), one of the world’s largest reinsurance buyers, looks set to upsize by 33% to provide the insurer $200 million of protection, but pricing has been fixed at the top-end of guidance.

Zenkyoren (the Japanese National Mutual Insurance Federation of Agricultural Cooperatives), which is one of the world’s largest buyers of reinsurance protection, has returned to the insurance-linked securities (ILS) market with Nakama Re Ltd. (Series 2020-1), seeking another slice of catastrophe bond backed coverage from the capital markets.

Zenkyoren has now secured $700 million of collateralized Japanese earthquake reinsurance cover from its latest cat bond, while the pricing for the two series of Nakama Re Ltd. (Series 2018-1) notes has now been fixed at the lowest end of the marketed range.

The target size for giant Japanese reinsurance buyer Zenkyoren’s latest catastrophe bond issuance has increased dramatically, rising 180% to $700 million for the sponsor, as it seeks to continue expanding its use of ILS to transfer earthquake risks to the capital markets, while at the same time pricing indications have dropped.

Giant Japanese reinsurance buyer Zenkyoren is returning to the catastrophe bond market for another opportunity to tap the capital markets for a source of collateralized earthquake reinsurance protection, with a currently $250 million Nakama Re Ltd. (Series 2018-1) transaction, sources said.

Demonstrating the appetite for catastrophe bond investments, the latest transaction to come to market from regular catastrophe bond sponsor Zenkyoren, Nakama Re Ltd. (Series 2016-1), has more than doubled in size to hit $700m during marketing.

Regular catastrophe bond sponsor Zenkyoren has returned to the ILS market looking for at least $250 million of three-year aggregate reinsurance protection against Japanese earthquake risks, through a Nakama Re Ltd. (Series 2016-1) issuance.