Mapfre Re finalises $200m Recoletos Re 2026-1 cat bond, at low-end pricing

Mapfre Re, the Spanish global reinsurance company, has now successfully secured $200 million of US named storm protection from the capital markets through its Recoletos Re DAC (Series 2026-1) catastrophe bond issuance, pricing the notes at the lowest end of initial guidance, Artemis can report.

Mapfre Re made its return to the catastrophe bond market in April, with the third in the series of Recoletos Re DAC cat bonds.

The company had previously secured $125 million of annual aggregate US named storm retrocession with its debut Recoletos Re DAC (Series 2024-1) catastrophe bond in December 2024, and then went on to secure €125 million of European windstorm protection from its second sponsorship, Recoletos Re DAC (Series 2025-1), in November last year.

You can read about all of Mapfre Re’s catastrophe bonds in our Deal Directory.

Mapfre Re was initially targeting a $200 million source of US named storm protection on an indemnity trigger and per-occurrence basis from this its Recoletos Re DAC (Series 2026-1) issuance.

As we later reported in our first update on this transaction, the target remained for Recoletos Re DAC to offer and sell a $200 million single Class A tranche of Series 2026-1 notes to investors, but the price guidance for the risk interest spread the notes would pay had dropped to the lowest end of initial guidance.

Now, sources have said that Mapfre Re has successfully priced the notes at the low-end of initial guidance range, securing its targeted $200 million of capital markets backed US named storm retrocession protection.

With these new cat bond notes now priced and the coverage secured once the deal settles, Recoletos Re DAC, Mapfre Re’s Ireland-based issuance vehicle, will issue a $200 million single tranche of Series 2026-1 Class A notes, that will be sold to cat bond investors and the proceeds be used to collateralize a retrocession agreement between the issuing vehicle and Mapfre Re.

The $200 million of Series 2026-1 Class A cat bond notes that Recoletos Re DAC will issue come with an initial attachment probability of 2.57%, an initial base expected loss of 1.836%, and were initially offered to cat bond investors with spread price guidance in a range from 4.25% to 4.75%.

As we reported, that guidance was revised to a single figure of 4.25%, so the lowest end of guidance, which is where we understand the notes have now been priced.

As a result, Mapfre Re has managed to secure its largest catastrophe bond so far, with the company utilising investor appetite within the market to get the notes priced at the low-end of guidance.

As a reminder, you can read all about this new Recoletos Re DAC (Series 2026-1) catastrophe bond and view details on almost every other cat bond ever issued in our extensive Artemis Deal Directory.