Turicum Re 2026-1 cat bond enables Zurich to re-establish its presence in growing ILS market: Mantero

Zurich’s successful sponsorship of its $150 million Turicum Re Ltd. (Series 2026-1) issuance, which provides the firm with a multi-year and fully-collateralized source of US named storm and earthquake reinsurance protection, enables the company to re-establish its presence and reputation in the growing insurance-linked securities (ILS) market, Paolo Mantero, Head of Group Reinsurance has said.

As we’ve been reporting, Zurich, the European headquartered global re/insurance company, made its return to the catastrophe bond market in late March, to sponsor its first issuance since 2012.

Initially, Zurich was looking to secure $125 million or more of multi-year and fully-collateralized US named storm and earthquake reinsurance protection from this Turicum Re 2026-1 cat bond deal.

However, during the marketing phase of the transaction, Zurich raised the target size for the Turicum Re 2026-1 Class A notes to between the initial $125 million and as much as $150 million, while at the same the notes saw their price guidance lowered.

Then, in early April, Zurich managed to secure the upper-end of the size target for this Turicum Re 2026-1 cat bond deal, while also securing the coverage at attractive and below-guidance pricing.

The reinsurance protection that the Turicum Re Series 2026-1 Class A catastrophe bond notes will provide has been structured on an indemnity trigger and per-occurrence basis and will run across a three-year term to April 2029.

“The strong risk quality of Zurich’s Property portfolio made the offering attractive to investors, enabling Zurich to successfully close the bond at Zurich’s target capacity and below guidance pricing,” Zurich explained.

Paolo Mantero, Head of Group Reinsurance for Zurich, commented: “Turicum Re enables Zurich to re-establish its presence and reputation in the growing and important ILS market. Insurance-linked securities are an established and strategic source of reinsurance capacity that can provide additional flexibility and cost efficiency, complementing Zurich’s traditional reinsurance relationships.”

James Bracken, Chief Financial Officer of Zurich North America, said: “The successful placement of the cat bond is the result of the great work Zurich has done in managing its nat-cat exposure while growing its market share in the property market.

“We view this as an important tool to continue to confidently offer best-in-class property protection to our commercial customers.”

As a reminder, you can read all about this new Turicum Re Ltd. (Series 2026-1) catastrophe bond and every other cat bond transaction ever issued in the extensive Artemis Deal Directory.