Travelers targets its largest cat bond sponsorship ever, now up to $750m reinsurance

Travelers is the latest company aiming to upsize its catastrophe bond sponsorship in 2026, with the company now seeking between $600 million and $750 million of multi-peril reinsurance protection from the Long Point Re IV Ltd. (Series 2026-1) issuance which would make it the largest cat bond ever sponsored by the insurer, Artemis understands.

The Travelers Companies, the US property & casualty insurance giant, returned to the catastrophe bond market at the end of April, with an initial target to secure $500 million of multi-peril reinsurance protection covering losses in northeast states.

Now, we’re told the target size of the issuance has been raised, while the price guidance has been lowered, following the common trend among cat bonds issued this year.

Travelers sponsored its debut catastrophe bond back in 2007, since when it has now brought seven further issuances to market.

The most recent was its $575 million Long Point Re IV Ltd. (Series 2022-1) sponsored roughly four years ago, it’s biggest at the time, but the reinsurance that cat bond provides is set to mature at the start of June.

As a result, with Travelers target for this new Series 2026-1 cat bond under Long Point Re IV now raised to between $600 million and as much as $750 million of reinsurance limit, it seems the insurer will renew more cat bond coverage than is due to mature.

Notably, this is now targeted to be Travelers largest catastrophe bond sponsorship ever, making the insurer another company that is increasing its participation in this market, as its risk transfer and reinsurance needs grow.

Read about all of Travelers catastrophe bonds in our extensive Deal Directory.

Long Point Re IV Ltd. is now offering to investors a single tranche of Series 2026-1 Class A notes sized at between $600 million  and $750 million, to provide reinsurance to a range of Travelers subsidiaries against losses from the same perils as its 2022 cat bond, so U.S. tropical cyclone, earthquake, severe thunderstorm, and winter storm events, across Northeastern U.S. states only.

The Long Point Re IV 2026-1 cat bond notes will provide Travelers with this multi-peril northeast US reinsurance on an indemnity trigger and per-occurrence basis across a four year term, with maturity expected to be in early June 2030.

The now between $600 million and $750 million of Class A notes come with an initial base expected loss of 1.38% and were first offered to cat bond investors with price guidance in a range from 4% to 4.75%.

We’re now told that the price guidance range has been lowered and updated to between 3.5% and 4%.

So Travelers looks on-track to secure its largest slice of catastrophe bond backed reinsurance in its history, with attractive pricing also the prospect given how cat bonds are executing of late.

You can read all about Travelers new Long Point Re IV Ltd. (Series 2026-1) multi-peril catastrophe bond and every other transaction in the Artemis Deal Directory.