Achmea raises Windmill III Re 2026-1 cat bond target to €100m, price guidance lowered

Achmea, the Netherlands headquartered European insurance group, has now raised its target for collateralized European windstorm reinsurance from the new Windmill III Re DAC (2026-1) catastrophe bond by one-third to €100 million, while the price guidance has been lowered, Artemis can report.

Achmea returned to the catastrophe bond market at the start of the month, initially seeking €75 million in collateralized European windstorm reinsurance protection from the capital markets through sponsorship of this Windmill III Re 2026-1 cat bond.

It saw Achmea returning to layer on more protection and for the first time seeking to stagger the maturities of its cat bond coverage, given the €100 million of reinsurance protection from a Windmill III Re 2024-1 deal remains in-force until the end of June 2028.

Now, we’re told Achmea is aiming to upsize this new Series 2026-1 cat bond by one-third to provide another €100 million of capital markets backed reinsurance, while at the same time the price guidance has fallen to below the initial range that was offered.

This new Windmill III Re Series 2026-1 catastrophe bond sponsorship will be the fifth for Achmea.

You can read about all of Achmea’s Windmill cat bond deals in our extensive Deal Directory.

Ireland domiciled designated activity company Windmill III Re DAC is now offering €100 million of Series 2026-1 Class A cat bond notes to investors, to provide group reinsurer Achmea Reinsurance Company NV with a four-year source of collateralized European windstorm reinsurance protection on an indemnity and per-occurrence basis.

Like the previous Windmill cat bond, we understand this new issuance will also cover losses from certain severe convective or thunderstorm types risks, including hail and tornadoes for the sponsor.

The now €100 million of Windmill III Re 2026-1 Class A notes come with an initial expected loss of 2.58% and were first marketed to investors with price guidance in a range from 4.25% to 5%

We’re now told the price guidance has fallen to below that range, updated at a single figure of a 3.75% risk interest spread.

For comparison, the €100 million of Windmill III Re 2024-1 cat bond notes had an initial expected loss of 2.19% and priced to pay investors an initial risk interest spread of 5.25%, so considerably higher for a lower expected loss than the new Series 2026-1 notes, reflecting reinsurance and cat bond market price softening.

You can read all about this Windmill III Re DAC (2026-1)  transaction and every catastrophe bond deal in our extensive Artemis Deal Directory.