Sabine Re Ltd. (Series 2026-1)

This is the second Sabine Re Ltd. catastrophe bond issuance to be sponsored by Allied Trust Insurance Company, a Texas domiciled company and an admitted P&C insurer that underwrites property-related and homeowners insurance in Texas, Louisiana, North Carolina and South Carolina.

The company is again using Bermuda domiciled special purpose insurer (SPI) Sabine Re Ltd. for its second catastrophe bond sponsorship, in a transaction that is similar to its first.

Sabine Re Ltd. is offering a single tranche of Series 2026-1 Class A cat bond notes that will be sold to investors and the proceeds used to collateralize a multi-year named storm reinsurance agreement with the sponsor, Allied Trust Insurance.

Like its first cat bond, this Sabine Re 2026-1 issuance will provide Allied Trust with a three-year source of named storm reinsurance protection, covering losses in the states of Texas, North Carolina, South Carolina and Louisiana.

The named storm reinsurance protection will be on an indemnity trigger and per-occurrence basis, with maturity due at the start of April 2030, we are told.

$100 million of Series 2026-1 Class A notes are being offered, which are designed to cover a share of Allied Trust’s losses from an attachment point of $25 million, up to exhaustion at $150 million. Those figures are said to be after stated reinsurance, with an effective first-event attachment being at $360 million, sources said.

The Class A notes are expected to have an initial attachment probability of 1.4%, an initial base expected loss of 0.93% and are being offered to cat bond investors with price guidance for a risk interest spread in a range from 5.5% to 6.25%, we understand.