Zurich, the European headquartered global re/insurance company, is now aiming to secure up to $150 million of US named storm and earthquake reinsurance protection from its Turicum Re Ltd. (Series 2026-1) issuance, while the price guidance has been lowered for the notes on offer, Artemis can report.
Then, after more than 13 years, Zurich made its return to the catastrophe bond market in late March, marking the company’s first time in the market since 2012.
Initially, the re/insurer was seeking $125 million or more in US named storm and earthquake reinsurance protection from this Turicum Re 2026-1 deal.
Now, we’ve learned that Zurich is targeting between the initial $125 million and as much as $150 million of reinsurance from these Turicum Re 2026-1 cat bond notes.
At the same time, in line with the price developments being seen in the market, the tranche of notes on offer have seen their price guidance lowered, we understand.
The Turicum Re Series 2026-1 Class A catastrophe bond notes are designed to provide Zurich American with multi-year reinsurance protection against losses from US named storms and earthquakes.
As we explained in our previous article, the reinsurance protection will also benefit inter-company pooling members of the Zurich group.
The protection will be structured on an indemnity trigger and per-occurrence basis and will run across a three-year term to April 2029.
What was a $125 million tranche of Class A cat bond notes, are now being offered at between $125 million and $150 million in size.
These Class A cat bond notes would attach their coverage at $650 million of losses to the cedent and protect a share of losses up to exhaustion at $850 million.
These notes come with an initial attachment probability of 9.22%, 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%, but that has now fallen to a new range of between 15.75% and 16.75%, sources said
As a result, it seems there is a strong chance Zurich will look to secure more than its initially targeted reinsurance from its latest catastrophe bond, and at lower pricing than the initial guidance.
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.
