Inigo secures 15% upsized $115m Montoya Re cat bond

Inigo Insurance, the London headquartered specialty insurance and reinsurance underwriter, has now finalised its latest catastrophe bond, with its new $115 million Montoya Re Ltd. (Series 2025-1) issuance now priced, which is the first cat bond from the company to feature multiple tranches, one being a new subsequent event cover.

Inigo Insurance made its return to the catastrophe bond market earlier this month, with an initial target to secure $100 million of multiple tranche issuance, one of which will provide second and subsequent event protection on a per-occurrence basis.

As we then reported in our first update, the target size for Inigo’s fourth sponsored cat bond had risen, with the company lifting it 15% to secure $115 million of protection.

Now, sources have told us that Inigo has successfully secured its latest catastrophe bond, with the notes pricing below the initial guidance to provide that 15% upsized $115 million of protection to the company.

This Montoya Re Ltd. (Series 2025-1) issuance will complement the annual aggregate protection from Inigo’s three previous Montoya Re cat bonds and the first tranche of this 2025 issuance, which is also aggregate, means the company has broad peak peril retrocessional reinsurance from the capital markets covering an aggregation of frequency events, or two or more events above a certain size.

The Class A tranche of Series 2025-1 notes were originally $80 million in size, which was then lifted to $85 million in the first update.

The Class A notes will provide annual aggregate protection and will have an initial attachment probability of 3.12%, an initial expected loss of 2.75%, and were first offered to investors with price guidance in a range from 6% to 6.75%. That price guidance was lowered to 5.75% to 6%, and eventually they priced at 5.75%.

The smaller Class B tranche of Series 2025-1 notes were originally $20 million in size, which was then lifted to an upsized $30 million in the first update,

The tranche of Class B notes will provide per-occurrence based second and subsequent event protection, with an an initial attachment probability of 2.67%, an initial expected loss of 1.67%, and were first being offered to investors with price guidance in a range from 6% to 6.75%. That price guidance was lowered to 5.75% to 6%, and eventually they priced at 5.75%.

Being a second and subsequent event cover, it also appears that this Class B tranche of notes will require a catastrophe industry loss event of above a certain index level to occur, to then be activated to provide coverage for future events.

This is a strong result for Inigo, as this latest cat bond builds on the company’s previous success across the market. It’s also particularly encouraging to see the company secure its first multiple tranche issuance.

You can read all about this new Montoya Re Ltd. (Series 2025-1) catastrophe bond, the second from Inigo Insurance, as well as details on every other cat bond issued in our extensive Artemis Deal Directory.