Turicum Re Ltd. (Series 2026-1)

This Turicum Re Ltd. Series 2026-1 issuance is the first Rule 144A natural catastrophe bond to be sponsored by European headquartered global re/insurance company Zurich since late 2012, according to our records.

Zurich has previously sponsored natural catastrophe bonds to provide reinsurance for some of the risks of its US underwriting entities and for the European parent, with its first sponsorship having been back in 2001.

Turicum Re Ltd. has been established in Bermuda for issuing catastrophe bonds and with this first Series 2026-1 issuance the sponsor or cedent is said to be Zurich American Insurance, often better known as one of the main underwriting entities of Zurich North America.

We’re told that Turicum Re Ltd. is set to offer a single Class A tranche of Series 2026-1 notes to cat bond investors, with the proceeds from their sale set to collateralize a reinsurance agreement with Zurich American Insurance.

The currently $125 million of Turicum Re Series 2026-1 Class A catastrophe bond notes are designed to provide Zurich American with multi-year reinsurance protection against losses from US named storms and earthquakes. The reinsurance protection will also benefit inter-company pooling members of the Zurich group, we understand.

The protection will be structured on an indemnity trigger and per-occurrence basis and will run across a roughly three-year term to April 2029, we understand.

The $125 million of Turicum Re Series 2026-1 Class A cat bond notes would attach their coverage at $650 million of losses to the cedent and protect a share of losses up to exhaustion at $850 million.

The Class A notes will come with an initial attachment probability of 9.22%, an initial base expected loss of 7.88% and the cat bond is being offered to investors with price guidance for a risk interest spread in a range from 16.75% to 17.25%, sources said.

Update 1:

We’re told that Zurich’s target for this Turicum Re Series 2026-1 catastrophe bond issuance has been lifted, with between the original $125 million and $150 million of reinsurance now sought.

The price guidance for the Class A notes has been lowered to an updated range for a risk interest spread of between 15.75% and 16.75%.

Update 2:

We’re told that at final pricing Zurich secured its upsized target of $150 million of reinsurance from this Turicum Re Ltd. Series 2026-1 catastrophe bond sponsorship.

The Class A notes priced to pay investors an initial risk interest spread of 15.75%, which is the low-end of reduced guidance and roughly a 7% decline in price from the mid-point of the range the notes were first offered with.