Global P&C insurer AmTrust Financial Services has now raised the target size of its new Solis Re Ltd. (Series 2025-1) catastrophe bond issuance, with now up to $150 million of northeast US named storm reinsurance being sought from the deal, Artemis has learned.
As we explained, AmTrust last featured in the catastrophe bond market in 2017, when the company sponsored an innovative Fortius Re II Ltd. (Series 2017-1) transaction that secured it both property and workers compensation reinsurance coverage from the capital markets.
So it was good to see the company back and encouraging now to learn from sources that AmTrust may upsize this Solis Re 2025-1 catastrophe bond by as much as 50%.
The company is seeking named storm reinsurance from the capital markets to cover a portfolio of commercial, specialty programs and E&S business in the United States northeast and is using its subsidiary subsidiary Technology Insurance Company, Inc. as the ceding insurer to this cat bond.
Technology Insurance Company, Inc. pools risks from across a range of underwriting subsidiaries within the AmTrust Financial Services group.
We now understand that the target is for Solis Re Ltd. to issue between the initial $100 million and as much as $150 million in Series 2025-1 cat bond notes, with the deal looking likely to become the latest cat bond in 2025 to upsize.
The now up to $150 million of notes will ultimately provide AmTrust with a multi-year source of indemnity and per-occurrence based fully-collateralized named storm reinsurance protection across northeast states over a three year term.
As well as looking set to be upsized, we understand the price guidance has now been updated, with the spread offered dropping to the bottom of the initial range.
The now up to $150 million of Solis Re Ltd. Series 2025-1 Class A notes come with an initial expected loss of 0.68% and were first offered to cat bond investors with initial price guidance for a spread of between 3.5% and 4%.
We’re now told that the spread guidance has been lowered to 3.5%, so the bottom of the initial range.
Which indicates strong execution is on the cards for AmTrust in its return to the catastrophe bond market, with its first Solis Re cat bond looking set to upsize by as much as 50%, while pricing down.
Read all about this Solis Re Ltd. (Series 2025-1) catastrophe bond comes to market and you can read about this and every other cat bond deal in the Artemis Deal Directory.
