American Coastal lifts Armor Re II 2024-2 cat bond target, now up to $150m

American Coastal Insurance Company has lifted the target size for its latest catastrophe bond, with now up to $150 million in Florida named storm reinsurance protection sought from this new Armor Re II Ltd. (Series 2024-2) issuance, Artemis has learned.

It’s set to be the second Armor Re II catastrophe bond from the insurer of 2024, having brought a $200 million Armor Re II Ltd. (Series 2024-1) cat bond issuance to market back in April.

American Coastal Insurance Company (AmCoastal Insurance) is no stranger to the cat bond market and this new issuance will be the seventh to take the Armor Re name, although a number of those where sponsored by United and Interboro entities, as well as AmCoastal Insurance.

See details of every catastrophe bond transaction in the Artemis Deal Directory.

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.

Now, we’re told by sources that the target is to secure between that level and $150 million of reinsurance from this new cat bond deal, while at the same time the price guidance has fallen, once again indicating the strong investor demand being seen at this time for new catastrophe bond issues.

These Armor Re II 2024-2 Class A cat bond notes will provide American Coastal with a just over three-year source of 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 $150 million of Series 2024-2 Class A notes that Armor Re II Ltd. will issue have 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%.

We’re now told that as well as looking set to upsize, the price guidance for these cat bond notes has also been lowered to the bottom-end of that range, at 9%.

While almost every cat bond is expanding in size and pricing down, this one being Florida wind specific should demonstrate to potential sponsors of cat bonds next year that getting out early with their Florida hurricane cat bond issues may be advisable, as the execution seen in the cat bond market right now can result in attractive pricing for insurer sponsors.

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.