Migdal Insurance secures $100m Turris Re Israel quake cat bond debut

Migdal Insurance Company Ltd. has now successfully secured its targeted $100 million of earthquake reinsurance covering exposures in Israel from its debut Turris Re Ltd. (Series 2025-1) catastrophe bond transaction, Artemis understands from sources.

Israeli insurance, pension and financial services company Migdal Insurance became the latest first-time sponsor entrant to the catastrophe bond market back at the end of October, bringing with it an entirely new peril for the market as well.

Seeking $100 million of multi-year, fully-collateralized and capital markets backed reinsurance protection against earthquakes in Israel, Migdal Insurance’s debut cat bond offering is something unique in the history of the sector.

We’ve now learned that the insurer has successfully secured that targeted earthquake reinsurance, with the notes being offered under the Turris Re Ltd. Series 2025-1 issuance having priced.

Turris Re Ltd. will now issue a single $100 million tranche of Series 2025-1 Class A notes, with the cat bond set to provide Migdal Insurance with three year’s of fully-collateralized indemnity and per-occurrence based reinsurance protection covering its losses from earthquakes that affect Israel.

The Class A notes come with an initial expected loss of 0.27%, so are a relatively risk remote layer. They were initially offered to cat bond investors with price guidance for a spread in a range from 2.1% to 2.4%.

We’re now told that the Turris Re Series 2025-1 Class A notes have been priced to pay cat bond investors a risk interest spread of 2.4%, so the top-end of the guidance range.

Once this new cat bond issuance settles, Migdal Insurance will become the thirteenth first-time cat bond sponsor to come to market in 2025.

There is one more in the market at this time as well, so 2025 looks set to equal the previous record for debut sponsors of catastrophe bonds, at least.

For Migdal Insurance, while its debut cat bond priced at the upper-end of guidance this is still a positive result, as it secured its targeted reinsurance within the price guidance range and for a brand new peril category this is a positive outcome and bodes well for any plans to repeat the issuance in future years.

You can read all about this new Turris Re Ltd. (Series 2025-1) catastrophe bond and every other cat bond transaction issued in our extensive Deal Directory.