RenaissanceRe is now looking to as much as double the size of its latest catastrophe bond during the offering phase, with the target for the Mona Lisa Re Ltd. (Series 2026-1) issuance lifted to provide it between $325 million and $400 million in multi-peril catastrophe retrocessional reinsurance, sources have told Artemis.
RenaissanceRe (RenRe) returned to the cat bond market with this Mona Lisa Re 2026-1 deal earlier this month, with an initial target to secure $200 million of multi-peril catastrophe retrocessional reinsurance for its own portfolio and that of its flagship partner capital vehicle DaVinci Re.
Now, we’re told that the reinsurer’s ambitions for the deal have roughly doubled, with now up to $400 million in retro being the target for the company, while at the same time the risk interest spreads offered have been reduced.
This will become the seventh Mona Lisa Re Ltd. catastrophe bond to be sponsored by RenaissanceRe (RenRe), the Bermuda based reinsurance company and third-party capital manager.
As we said, the target RenRe now has for this Mona Lisa Re Series 2026-1 catastrophe bond issuance is to secure between $325 million and $400 million of fully-collateralized catastrophe retrocession from the capital markets.
Recall that, one tranche of notes is set to provide retrocession across a five year term, while the other will provide fours years of coverage.
The Series 2026-1 notes Mona Lisa Re is offering will provide annual aggregate retro reinsurance on an industry-loss trigger basis to RenRe and DaVinciRe, covering losses caused by U.S., Puerto Rico, U.S. Virgin Islands, and D.C. named storm and earthquake events, as well as protection for Canadian earthquakes as well.
What was initially offered as a $100 million Class A tranche of notes are now targeted to be between $175 million and $200 million in size, we understand.
The Class A notes have an initial expected loss of 2.82% and were first offered to cat bond investors with price guidance in a range from 5.75% to 6.5%, but we’re now told that has been lowered to a revised range of 5.5% to 5.75%.
The Class B tranche also started at $100 million in size, but are now pitched at between $150 million and $200 million, sources said.
The Class B notes are riskier, having an initial expected loss of 6.74% and were first offered to cat bond investors with price guidance in a range from 12.25% to 13%, but that has now also been lowered to a new range of 12% to 12.25%.
Which shows RenRe looking to price its latest catastrophe bond deal at the low-ends of initial guidance, or below, while also perhaps upsizing it by as much as 100%.
You can read all about this Mona Lisa Re Ltd. (Series 2026-1) catastrophe bond from RenaissanceRe and every other cat bond ever issued in our extensive Artemis Deal Directory.
