AmCoastal increases Armor Re II 2024-2 cat bond target again, now up to $200m

Further reflecting the high-demand for new catastrophe bond issues at this time, the Armor Re II Ltd. (Series 2024-2) issuance for sponsor American Coastal Insurance Company (AmCoastal) has increased in size again, with now up to $200 million in Florida named storm reinsurance protection sought.

When AmCoastal Insurance came to market with this new Armor Re II 2024-2 cat bond in November, the initial target size was to secure $100 million of reinsurance.

But, as we reported yesterday, the insurer increased the target size for the issuance, with between $100 million and $150 million of reinsurance then being sought.

Now, in a second update on the deal, we’re told that the size target has been increased again, with now between $150 million and $200 million of reinsurance being the target for AmCoastal Insurance.

At the same time, we’re also told that the price guidance for the now up to $200 million of Armor Re II 2024-2 cat bond notes has reverted back to being offered in a range, but at a further reduced level.

The Series 2024-2 Class A cat bond notes that Armor Re II is set to issue will provide American Coastal with just over three-year’s of fully-collateralized Florida named storm reinsurance protection, running to the end of December 2027, on an indemnity trigger and per-occurrence basis over that risk period.

The now up to $200 million of Series 2024-2 Class A notes that Armor Re II Ltd. come with an initial expected loss of 0.59% and were initially offered to cat bond investors with spread price guidance in a range from 9% to 10%.

As we reported yesterday, the price guidance for these cat bond notes was lowered to the bottom-end of that range, at 9%.

Now, in this latest update, the price guidance is back to a range again, but at a lower-level of between 8.5% and 9%, we understand.

As we said before, with this being a Florida wind only catastrophe bond issuance, it should demonstrate to potential sponsors that reinsurance capacity in the cat bond market is both abundant and well-priced at this time, perhaps encouraging more to break with their typical mid-year renewal tradition and try out the capital markets at less-congested (for this peril) times.

You can read all about this new Armor Re II Ltd. (Series 2024-2) catastrophe bond transaction and every other cat bond ever issued in our Artemis Deal Directory.