Meritage Re Ltd. (Series 2026-1)

This is the latest catastrophe bond to come from the SageSure stable of companies owned and invested in by the catastrophe exposed managing general underwriting specialist.

The three ceding companies for this first Meritage Re catastrophe bond, overseen by GeoVera Nova, are GeoVera Insurance Company, GeoVera Specialty Insurance Services, and SafePort Insurance Company, we understand.

Meritage Re Ltd. has been established in Bermuda as a vehicle for issuing series of catastrophe bond notes.

The first issuance from Meritage Re Ltd. sees a single tranche of Series 2026-1 Class A notes being offered to investors, with the sale of those notes set to provide the collateral to underpin a reinsurance agreement that will cover the three named ceding entities.

The initial target is to secure $200 million of reinsurance protection from the capital markets through this Meritage Re 2026-1 cat bond.

This reinsurance limit will protect the ceding companies against on an indemnity trigger and per-occurrence basis against certain losses from US named storm events with Florida the largest exposure contributor, we are told, and that coverage is set to run over a three year term beginning early March 2026.

Meritage Re Ltd. is offering a single $200 million Series 2026-1 Class A tranche of notes to investors, with the notes having an attachment point at $400 million of losses and exhausting their coverage at $800 million.

The Class A notes come with an initial attachment probability of 3.26%, an initial base expected loss of 1.89% and they are being offered to investors with price guidance for a risk interest spread of between 6% and 6.5%, we understand.