New cat bond limit of $950mn entered the market last week, with deals offering lower multiples than comparative issuances.
Vitality Re, Montoya Re and Veraison Re offered lower multiples on some of their notes this year compared with prior to issuances.
Health insurer Aetna is seeking $250mn of life reinsurance coverage on an annual aggregate, indemnity basis.
The Class B tranche is offering a lower midpoint multiple versus the Class B note issued in January 2024.
Vitality Re XVI-B is offering a midpoint multiple of 15x, with a midpoint spread of 300 basis points (bps) and an expected loss of 0.2%.
In comparison, Aetna’s 2024 Class B note paid a multiple of 18x, with a higher spread of 350bps and a similar expected loss of 0.19%.
Inigo’s $100mn Montoya Re deal is providing US named storm and North America quake coverage on a PCS industry loss basis.
Montoya Re 2025-1 A is offering a midpoint multiple of 2.1x with a midpoint spread of 637.5bps and an expected loss of 3.02%.
The 2024 Class A note paid a slightly higher multiple of 2.3x, albeit with a significantly higher spread of 1,150bps for a riskier deal with an expected loss of 4.91%.
GeoVera is targeting $275mn of US quake coverage across two tranches on an indemnity, per-occurrence basis with its latest Veraison Re deal.
The $200mn Class A note is offering a midpoint multiple of 3x with a midpoint spread of 425bps, on the expected loss of 1.42%.
Last year’s single Class A note paid a multiple of 4.7x with a spread of 475bps and a lower expected loss of 1.02%.
One deal priced last week, with Security National securing $104mn with its debut MMIFS Re cat bond.
The bond will provide coverage over three years on an indemnity, per occurrence basis for earthquake and SCS in Canada.
A previous version of this story incorrectly stated that MMIFS Re's bond had downsized in dollar terms per latest guidance; this was due to the application of differing exchange rates. As of 10 January 2025, the size of this bond has not changed in Canadian dollar terms terms.