American Integrity gets $260m of reinsurance from new Integrity Re III 2026-1 cat bond

American Integrity Insurance Company has now secured $260 million of named storm reinsurance protection from its new Integrity Re III Ltd. (Series 2026-1) catastrophe bond sponsorship, while the coverage has been secured at below guidance pricing for each of the four tranches of notes, Artemis understand.

American Integrity Insurance ventured back to the catastrophe bond market at the start of February with an initial target to secure at least $175 million of fully-collateralized US named storm reinsurance for losses across southeastern states from this issuance.

As we reported in our first update related to this Integrity Re III Series 2026-1 cat bond issuance, the size target had been raised, with between $215 million and $275 million of notes offered across the four tranches, while price guidance was reduced.

In a second update we reported that the size target had been adjusted again, with the goal updated to secure American Integrity between $240 million and $260 million of fully-collateralized and multi-year named storm reinsurance protection, while the price guidance was further adjusted downwards again.

Now, we’re told that American Integrity Insurance has secured the $260 million target for named storm reinsurance for this new Integrity Re III 2026-1 catastrophe bond issuance, with all four tranches of notes pricing below the initial guidance ranges.

We’ve explained in our previous coverage on this deal that the transaction features one of the highest-risk tranches of cat bond notes ever seen. Investors have been supportive, as that higher-risk, lower-layer of the reinsurance tower remained in the offering and has also been finalised at attractive pricing for the sponsor.

This new catastrophe bond from American Integrity Insurance is now confirmed to become the company’s ninth in the Integrity Re series of deals.

Details of every cat bond from American Integrity Insurance can be found in our Deal Directory.

With the notes priced and details now finalised, Integrity Re III Ltd. will issue $260 million of notes across the four tranches that have now been secured, to provide American Integrity with multi-year and fully-collateralized named storm reinsurance protection across the states of Florida, Georgia, North Carolina and South Carolina, on an indemnity trigger and per-occurrence basis over a three year term for the Class A, B and C notes, while the riskiest layer Class D notes have just a one year term.

The Class A tranche of notes were initially $75 million, then updated to target as much as $100 million in size, before being adjusted again to between $85 million and $90 million.

The Class A notes have now been priced to provide $90 million of reinsurance, we understand. They come with an initial base expected loss of 1.38% and were first offered to cat bond investors with price guidance in a range from 8% to 9%, which was first lowered to between 7% and 8%, then again to between 6.75% and 7%, before final pricing was secured at a risk interest spread of 7%.

The Class B tranche were initially $50 million, then offered at up to $75 million in size and the target was adjusted again to between $60 million and $70 million of note.

The Class B notes have now been finalised at $70 million in size. They come with an initial base expected loss of 3.39% and were first offered to cat bond investors with price guidance in a range from 12% to 13%, which was first lowered to between 11% and 12%, then again to a range of 10.75% to 11%. Final pricing was achieved at a risk interest spread of 11%, we are told.

The Class C tranche of notes remained and have now priced at their initial $50 million size. The Class C notes come with an initial base expected loss of 4.56% and were first offered to cat bond investors with price guidance in a range from 17% to 19%, which was first lowered to between 16.5% and 17.5%, then again to between 16.25% and 16.5%,. The Class C notes have now priced to pay investors an initial risk interest spread of 16.25%, so the lowest guidance offered, sources said.

The final Class D tranche of notes were first sized at between $40 million and $50 million, which was later updated to between $45 million and $50 million. We’re now told they have been finalised at the upper $50 million size.

The Class D one year notes come with an initial base expected loss of 11.96%, one of the riskiest layers ever seen in the 144A cat bond market and the first price guidance we saw was for a spread of between 34% and 35%, which was then updated at a lower 32% to 34%. These riskier notes have now been priced for a risk interest spread of 33% to be paid, so again below the initial guidance indicating strong execution for the sponsor, we can report.

As this cat bond progressed to market it was clear that American Integrity Insurance was strategically adjusting the pricing and sizes of the four tranches in search of the most efficient and effective outcome, responding to investor feedback and their appetites for risk.

It demonstrates that higher-risk catastrophe bond opportunities are appealing to investors in the market, showing that the cat bond investor base can support sponsors needs for reinsurance in the lower-layers of their towers.

Ultimately, for American Integrity, the insurer has secured a large amount of reinsurance layered across parts of its tower at better than anticipated pricing in all cases, a strong result for this repeat sponsor.

You can read all about this new Integrity Re III Ltd. (Series 2026-1) catastrophe bond and every cat bond deal in the Artemis Deal Directory.