London headquartered specialty insurance and reinsurance underwriter Inigo is now seeking lower pricing for its latest catastrophe bond, with the price guidance for the $100 million of Montoya Re Ltd. (Series 2024-1) cat bond notes now updated to below the initial guidance range.
Inigo returned to the catastrophe bond market to sponsor its third Montoya Re cat bond deal earlier this month, targeting $100 million or more in aggregate multi-peril retrocessional reinsurance protection.
Inigo sponsored its first two catastrophe bonds in 2022 and secured itself $225 million of annual aggregate retrocessional protection across the pair of Montoya Re cat bonds.
With this third Montoya Re cat bond, Inigo is again seeking industry-loss triggered cat bond protection, seeking collateralized retro against large market losses caused by US named storms, and North American earthquakes, including Canada.
Inigo’s Syndicate 1301 at Lloyd’s will be the ultimate beneficiary of the coverage that is designed to run for more than three years to the end of March 2027, with coverage structured to use a PCS industry loss index trigger on an annual aggregate protection basis.
The still $100 million of Class A notes on offer with this Montoya Re 2024-1 cat bond will have an initial expected loss of 4.46% and were first offered to investors with coupon price guidance in a range from 12.25% to 13%.
We’re now told that the price guidance has been lowered, with an updated spread range of 11.5% to 12.25% now being offered to cat bond investors.
Meaning, Inigo now targets pricing at the low-end of initial guidance or even better with its third Montoya Re catastrophe bond deal, which would likely represent a more cost-efficient cover, on a multiple basis, than its late 2022 cat bond issuance.
You can read all about this new Montoya Re Ltd. (Series 2024-1) catastrophe bond, the second from Inigo Insurance, as wel as details on every other cat bond issued in our extensive Artemis Deal Directory.
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