Nakama Re Ltd. Series 2018-1

Zenkyoren has now secured $700 million of collateralized Japanese earthquake reinsurance cover from its latest cat bond, while the pricing for the two series of Nakama Re Ltd. (Series 2018-1) notes has now been fixed at the lowest end of the marketed range.

The target size for giant Japanese reinsurance buyer Zenkyoren’s latest catastrophe bond issuance has increased dramatically, rising 180% to $700 million for the sponsor, as it seeks to continue expanding its use of ILS to transfer earthquake risks to the capital markets, while at the same time pricing indications have dropped.

Giant Japanese reinsurance buyer Zenkyoren is returning to the catastrophe bond market for another opportunity to tap the capital markets for a source of collateralized earthquake reinsurance protection, with a currently $250 million Nakama Re Ltd. (Series 2018-1) transaction, sources said.