Beazley looks to reduce pricing further for $100m third Fuchsia nat cat bond

Beazley has for a second time lowered the price guidance for its new $100 million London Bridge 2 PCC Limited (Fuchsia 3 – 2025-1) catastrophe bond deal, as the company looks to secure the targeted natural catastrophe reinsurance at an even keener risk interest spread, Artemis can report.

Beazley, the London headquartered specialty insurance and reinsurance underwriter, returned to the catastrophe bond market with its third in the Fuchsia series of nat cat bonds in November.

The company’s initial target was to secure $100 million of peak peril catastrophe reinsurance on a fully-collateralized basis from this cat bond issuance.

That target has still not changed, but now the price guidance for the risk interest spread Beazley will pay for the coverage has been lowered twice.

Including its private cyber cat bonds, we now have 10 entries in our extensive Deal Directory for catastrophe bonds sponsored by Beazley.

For its third catastrophe bond covering natural perils, Beazley is again utilising the Lloyd’s insurance-linked securities (ILS) structure London Bridge 2 PCC Limited, while this Fuchsia 3 cat bond will become the fifth 144A cat bond issued through London Bridge 2 PCC.

With a $100 million target still, these Fuchsia 3 Series 2025-1 notes that London Bridge 2 PCC is offering will provide Beazley excess-of-loss reinsurance covering named storm and earthquake events that impact the United States, Canada and certain parts of the Caribbean, on an indemnity trigger and per-occurrence basis and over a more than three year term, running from January 2026 to the end of March 2029.

The still $100 million of Fuchsia 3 2025-1 cat bond notes come with an initial expected loss of 0.93%.

These notes were first marketed to investors with price guidance for an initial risk interest spread of between 3.75% and 4.5%, but as we reported in our first update that price guidance was lowered to a revised range of 3.5% to 3.75%.

Now, we’re told the price guidance has been lowered further, with the latest range being for a risk interest spread of between 3.25% and 3.5%.

With its third Fuchsia nat cat bond sponsorship Beazley continues to prioritise price over size, as it looks to secure the targeted reinsurance at the most efficient price.

You can read all about this London Bridge 2 PCC Limited (Fuchsia 3 – 2025-1) catastrophe bond transaction in our Deal Directory, where you can analyse details of almost every cat bond ever issued.