Texas Farm Bureau aims to upsize debut Fish Pond Re cat bond to $255m

First-time catastrophe bond sponsor the Texas Farm Bureau Insurance Companies is now seeking an upsized up to $255 million of named storm reinsurance through its Fish Pond Re Ltd. (Series 2024-1) cat bond issuance, Artemis understands.

Texas Farm Bureau Insurance is the insurance arm of Texas’s largest farm organisation, the Texas Farm Bureau, a non-profit focused on its members from the agricultural community.

It entered the cat bond market for its debut sponsorship at the start of December, seeking a $200 million source of named storm reinsurance through this Fish Pond Re 2024-1 cat bond.

We’re now told the target has been raised, with from $225 million to as much as $255 million of reinsurance now sought from this cat bond deal.

The Fish Pond Re Ltd. Class A tranche of Series 2024-1 catastrophe bond notes will now cover Texas Farm Bureau Insurance and its subsidiaries with up to $255 million of collateralized reinsurance against losses from named storms in the state of Texas, on an indemnity trigger and per-occurrence basis, over a three year term to the end of 2026.

The up to $255 million of notes will have an initial expected loss of 0.112% and were first offered to cat bond investors with spread price guidance in a range from 4% to 4.5%.

We’re now told that the price guidance has been lowered and the range narrowed, to an updated 4% to 4.25%.

The Fish Pond Re 2024-1 catastrophe bond appears set for strong execution for its first-time sponsor, with the issuance likely to upsize while the pricing looks set to be finalised at the mid-point of initial guidance, or lower.

You can read all about Texas Farm Bureau Insurance’s first catastrophe bond, this Fish Pond Re Ltd. (Series 2024-1) transaction, in our Deal Directory, where you can analyse details of almost every catastrophe bond ever issued.