Veraison Re Ltd. (Series 2024-1)

This is the second catastrophe bond to be sponsored by GeoVera Insurance Holdings, Ltd., as the company returns to the capital markets seeking $100 million or more in fully-collateralized US earthquake reinsurance protection through this Veraison Re Ltd. (Series 2024-1) issuance.

GeoVera is again using its Bermuda licensed special purpose insurer (SPI) Veraison Re Ltd. for this Series 2024-1 catastrophe bond issuance.

Veraison Re Ltd. is offering investors a single $100 million tranche of Series 2024-1 Class A notes, we understand, with those notes set to be exposed to losses from US earthquakes.

The reinsurance the notes will provide will cover GeoVera’s underwriting entities against losses from US earthquakes over a three year term running from March 1st, we’re told.

The reinsurance protection from this Veraison Re 2024-1 cat bond will be afforded on an indemnity trigger and per-occurrence basis.

Sources said that the $100 million of Class A notes would attach their reinsurance coverage for a US earthquake event that exceeded $700 million in losses to GeoVera, covering a percentage of losses up to an exhaustion point of $950 million.

The Veraison Re 2024-1 Class A cat bond notes will come with an initial attachment probability of 1.24%, an initial expected loss of 1% and are being offered to cat bond investors with spread guidance in a range from 5% to 5.5%, we understand.

Update 1:

GeoVera is now aiming to upsize this catastrophe bond deal by 75% to become a $175 million issuance of Series 2024-1 notes by Veraison Re ltd.

At the same time, the insurer is targeting lower pricing as well, with the updated spread guidance now being between 4.75% and 5%.

Update 2:

GeoVera secured its new catastrophe bond deal with the 75% upsizing to provide $175 million of reinsurance, while the notes priced to pay investors a spread of 4.75%, reflecting a roughly 10% drop in price from the mid-point of initial guidance.