Caelus Re V Ltd

We understand that the pricing has now been set for U.S. primary insurance firm Nationwide Mutual’s latest catastrophe bond issuance, the recently upsized to $450 million Caelus Re V Ltd. (Series 2018-1), with three of the four tranches priced below initial guidance and the fourth at the mid-point.

U.S. primary insurance firm Nationwide Mutual’s return to the catastrophe bond market in 2018 looks set to result in a bumper issuance, as the still-being-marketed Caelus Re V Ltd. (Series 2018-1) has grown by 50% to now offer investors $450 million of U.S. catastrophe risk exposed notes.

The insurance-linked securities (ILS) investor base is braced for the potential for losses to grow from U.S. primary insurer Nationwide Mutual Insurance Company’s $375 million Caelus Re V Ltd. (Series 2017-1) catastrophe bond, as the insurers aggregated natural catastrophe losses rise further.

Nationwide Mutual is back looking for another slice of multi-peril reinsurance protection with a new catastrophe bond issuance, a $300 million Caelus Re V Ltd. (Series 2018-1) transaction that marks the insurers return at a time when its in-force cat bond coverage is still facing losses.

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.