Zurich gets upsized $150m Turicum Re 2026-1 cat bond priced 7% below mid-guidance

Zurich has now secured its upsized target of $150 million of US named storm and earthquake reinsurance protection from its Turicum Re Ltd. (Series 2026-1) catastrophe bond, while the notes were priced to pay investors a spread roughly 7% below the mid-point of initial guidance, Artemis can report.

Zurich, the European headquartered global re/insurance company, returned to the catastrophe bond market in late March, seeking to sponsor its first issuance since 2012.

The initial target was 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.

As we then reported in our first update on this cat bond issuance, 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 time and in line with price developments seen in the market, the notes saw their price guidance lowered.

We’re now told by sources that Zurich secured the upper-end of the size target for its first catastrophe bond sponsorship since 2012, while also securing the coverage at attractive and below-guidance pricing.

Now, Bermuda-based structure Turicum Re Ltd. will proceed towards issuance of a $150 million tranche of Series 2026-1 Class A catastrophe bond notes, which are designed to provide Zurich entities with multi-year reinsurance protection against losses from US named storms and earthquakes.

The reinsurance protection the 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 Turicum Re Series 2026-1 Class A catastrophe bond notes upsized from their initial $125 million to $150 million in size during the offering of the transaction.

The now confirmed as $150 million of Class A notes come with an initial base expected loss of 7.88% and were first offered to investors with price guidance for a risk interest spread in a range from 16.75% to 17.25%.

As we reported, the price guidance fell to a new range of between 15.75% and 16.75% and we’re now told the Class A notes were priced to pay investors an initial risk interest spread of 15.75%, so the bottom end of reduced guidance and around 7% down from the mid-point of the initially offered range.

Which indicates a strong result for Zurich on its first venture back into the catastrophe bond market in over 13 years.

Zurich had first been seen as a sponsor in the cat bond market back in 2001, returning a number of times up to its last Lakeside Re issuance in late 2012, according to our records in the Artemis Deal Directory.

It’s encouraging to see a major player like Zurich returning to the catastrophe bond market and seeing value in the efficient, multi-year reinsurance protection the capital markets can provide.

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.