Swiss Re Insurance-Linked Fund Management

Original Risk: A Society for Change Agents

$1.25bn Kilimanjaro II Re cat bonds secure lowered pricing


Reinsurance company Everest Re’s latest catastrophe bond issuance is set to achieve an upsized $1.25 billion target at the reduced pricing levels reported earlier this week, making the transaction the best value in the reinsurers cat bond sponsorship history.

Everest Re’s twin series catastrophe bond issuance grew to $1.25 billion while being marketed, with the Kilimanjaro II Re Ltd. (Series 2017-1) more than doubling in size to $950 million, while its Kilimanjaro II Re Ltd. (Series 2017-2) twin remained at its launch target of $300 million.

The collateralized reinsurance protection being sought will provide the reinsurer with annual aggregate reinsurance cover against losses from named storms and earthquakes across the U.S. (including Puerto Rico) and Canada, on an industry loss basis and featuring a PCS index trigger.

The pricing has now been fixed, we understand, at the levels revealed earlier this week, with all tranches now priced towards or at the bottom end of the initial guidance ranges.

With pricing now finalised it seems Everest Re will be issuing both the Series 2017-1 four-year tranches and the Series 2017-2 five-year tranches of notes, which as a single issuance of cat bonds at $1.25 billion will be the second largest ever seen.

The Kilimanjaro II Re Ltd. (Series 2017-1) and Kilimanjaro II Re Ltd. (Series 2017-2) catastrophe bonds will complete and settle next week. You can read about every cat bond since the market’s inception in the Artemis Deal Directory.

Join Artemis in Singapore on July 13th 2017 for ILS Asia
ILS Asia 2017

Register today for ILS NYC 2023, our next insurance-linked securities (ILS) market conference. Held in New York City, February 10th, 2023.

Artemis ILS NYC 2023 - Insurance-linked securities conference in New York City

Get a ticket soon to ensure you can attend. Secure your place at the event here!

Print Friendly, PDF & Email

Artemis Newsletters and Email Alerts

Receive a regular weekly email newsletter update containing all the top news stories, deals and event information

  • This field is for validation purposes and should be left unchanged.

Receive alert notifications by email for every article from Artemis as it gets published.