Caelus Re V Ltd. Series 2017-1

A second tranche of U.S. primary insurer Nationwide Mutual Insurance Company’s catastrophe bond has now been triggered as its aggregated natural catastrophe losses have eaten further into the capital market backed reinsurance provision that the $375 million Caelus Re V Ltd. (Series 2017-1) catastrophe bond provides.

The $375 million Caelus Re V Ltd. (Series 2017-1) catastrophe bond, which was sponsored by U.S. primary insurer Nationwide Mutual Insurance Company in May and only came on-risk in June, looks set to face a loss as aggregated natural catastrophe claims have almost eaten through the riskiest tranche of notes.

The latest catastrophe bond from Nationwide Mutual Insurance Company is set to increase in size by 25% to $375 million, while at the same time pricing has dropped on the four tranches of the Caelus Re V Ltd. (Series 2017-1) cat bond.

U.S. primary insurer Nationwide Mutual Insurance Company is seeking to sponsor a $300 million Caelus Re V Ltd. (Series 2017-1) catastrophe bond, which will provide it with a new multi-year source of capital market backed catastrophe reinsurance protection.