Meritage Re 2026-1 cat bond priced to provide GeoVera and SafePort $200m of reinsurance

Sponsors GeoVera and SafePort have settled for $200 million of US named storm reinsurance protection from the new Meritage Re Ltd. (Series 2026-1) catastrophe bond, opting not to upsize the offering, but securing the coverage at lower pricing, Artemis can report.

Initially, when it launched to investors earlier in December, this Meritage Re Series 2026-1 cat bond issuance was targeted to secure a $200 million capital market backed source of named storm reinsurance to protect three ceding companies overseen by SageSure linked GeoVera Nova, namely GeoVera Insurance Company, GeoVera Specialty Insurance Services, and SafePort Insurance Company.

As we reported in an update on this deal yesterday, the target issuance size was raised, with up to $250 million of named storm reinsurance protection being sought from the capital markets, while at the same time, the price guidance had been lowered as the cedents targeted reduced spreads.

Now, we understand that the decision has been taken not to upsize this cat bond, with the ceding entities set to benefit from the initially targeted $200 million of fully-collateralized reinsurance from this offering.

But, the ambition to reduce the cost of the coverage has been achieved, as the notes have been priced at the low-end of guidance, sources have told us.

As a result, with the notes now priced, Meritage Re Ltd. will issue and sell to cat bond investors a $200 million tranche of Series 2026-1 Class A notes.

These notes will provide the aforementioned ceding companies with fully-collateralized, capital markets backed reinsurance protection against certain losses from US named storm events, on an indemnity trigger and per-occurrence basis over a three year term beginning early March 2026.

The now confirmed as $200 million of Class A notes come with an initial base expected loss of 1.89% and were first offered to investors with price guidance for a risk interest spread of between 6% and 6.5%.

As we reported in our update, that price guidance was revised to a lower range, with a spread of between 5.5% and 6% being offered to cat bond investors.

Now, we’re told the $200 million of Meritage Re Series 2026-1 notes have been priced to pay investors an initial risk interest spread of 5.5%, so at the low-end of the reduced guidance.

In this case the sponsors opted not to upsize the transaction it now appears, setting for their initially targeted reinsurance limit, but securing it at below guidance pricing and prioritising the cost of coverage achievable in the catastrophe bond market at this time.

You can read all about this new Meritage Re Ltd. (Series 2026-1) catastrophe bond transaction and every other cat bond ever issued in our Artemis Deal Directory.