Integrity Re cat bond pricing rises again for American Integrity

The price guidance for American Integrity Insurance Company of Florida, Inc’s fifth catastrophe bond issuance, Integrity Re Ltd. (Series 2022-1), has risen again, with the coupon now looking likely to be fixed above guidance.

At the same time, the new catastrophe bond from the US insurer looks likely to be issued at the recently reduced $75 million in terms of size.

American Integrity came to the catastrophe bond market seeking $125 million of reinsurance through a two tranche cascading arrangement back in early April.

As we explained earlier this week, the bond was restructured, with one tranche pulled and changes made to its attachment, in response to investor feedback, with the issuance shrinking as a result.

To recap, this Integrity Re Series 2022-1 cat bond will provide American Integrity with $75 million of reinsurance protection against named storm events in Florida, on an indemnity and cascading per-occurrence basis and over a three-year term, so covering three Atlantic hurricane seasons.

The $75 million Class A tranche of notes, which after the restructure now have an initial expected loss of 1.41% at the base case, last had guide pricing of 6.75%, but this has now been raised up to 7% according to our sources.

The notes were originally marketed with an initial expected loss of 1.37% at the base case and price guidance in a range from 6.25% to 6.75%.

Our sources suggest that little is expected to change now with this cat bond, so it looks set to be a $75 million issuance that will pay investors a 7% coupon, with settlement expected in around ten days time.

As with all of its catastrophe bonds, American Integrity is working with global reinsurance firm Hannover Re to front the capital markets for it.

You can read all about this Integrity Re Ltd. (Series 2022-1) catastrophe bond and every cat bond deal in the Artemis Deal Directory.