Arch raises Ramble Re 2026-1 retro cat bond target to $150m, as pricing falls

Arch Capital Group is now aiming to upsize its latest catastrophe bond sponsorship, now targeting a 50% upsized $150 million of property catastrophe retrocession for peak North American perils from its new Ramble Re Ltd. (Series 2026-1) issuance, Artemis has learned.

Arch Capital returned to the catastrophe bond market for what will be its third sponsorship earlier this month.

Initially, the target was to secure $100 million of peak peril catastrophe retrocessional reinsurance from the offering of Ramble Re 2026-1 cat bond notes.

We’re now told that Arch Capital has raised its target for protection by 50%, with now a $150 million issuance of notes anticipated.

At the same time, reflecting the continuing attractive conditions for sponsors in the cat bond market, the price guidance has been lowered by a full percentage point on the top and bottom end of the range that the notes are being offered to investors with.

As a result, Ramble Re Ltd. is now offering a $150 million single tranche of Series 2026-1 Class A notes that will provide Arch Capital with a fully-collateralized source of per-occurrence and weighted industry loss index trigger retrocession, over a three-year term, covering significant US Northeast named storm events and US or Canada earthquake loss events.

The now $150 million of Series 2026-1 Class A notes that Ramble Re Ltd. is offering will have an initial expected loss of 3.17%.

Initially, the notes were marketed to investors with price guidance for a risk interest spread of between 6% and 6.5%, but that has now fallen to a revised range of 5% to 5.5%, we understand.

For comparison, the Ramble Re 2024-1 cat bond notes from Arch’s last cat bond sponsorship had an initial expected loss of 3.19% and priced to pay investors a spread of 6.25%.

You can read all about this Ramble Re Ltd. (Series 2026-1) cat bond sponsored by Arch and every other catastrophe bond deal in our Artemis Deal Directory.