Ariel Re raises Titania Re 2024-1 cat bond target again, up to $325m now sought

Ariel Re has again increased the target size for its new Titania Re Ltd. (Series 2024-1) catastrophe bond transaction, with now as much as $325 million in multi-peril industry-loss triggered retrocessional reinsurance sought, while once again new and lower price guidance is being offered.

Having returned to the catastrophe bond market at the end of October looking to secure $175 million or more in multi-peril industry-loss triggered retrocession through this new cat bond deal, as we then reported last week the offering size was increased to $275 million of notes, a roughly 57% increase.

Sources have now told us that the offering size has been raised again, with between that $275 million and $325 million of retro reinsurance now being sought by Ariel Re from its latest cat bond issuance.

At the same time the price guidance has been lowered for the second time, as Ariel Re targets strong execution for this new Titania Re 2024-1 cat bond deal.

What was first pitched as a $100 million Class A tranche of Series 2024-1 notes were then offered at $150 million in size in the first update, but are now targeted at between that level and $175 million, we understand.

The Class A notes have an initial base expected loss of 2.47% and were first offered to cat bond investors with price guidance in a range from 7.25% to 8%, was was then reduced to between 6.5% and 7.25%, but now has been lowered again to between 6% and 6.5%, we are told.

What was a targeted $75 million Class B tranche of notes were then offered at $125 million in size after the first update, but sources have now told us that the latest size guidance is for from $125 million to as much as $150 million in Class B notes to be issued.

The Class B tranche of notes come with an initial base expected loss of 4.02% and were initially offered to cat bond investors with price guidance in a range from 10.5% to 11.25%, which was later reduced to a range of 9.75% to 10.5%, but are now offered with a further reduction at between 9.25% and 9.75%, we are told.

Such strong execution at issuance should send a signal to other reinsurance firms seeking industry-loss trigger retrocession.

That the catastrophe bond market has a strong appetite for new risk at this time, helped by strong investor demand for new paper, a market that has had some excess cash to deploy, and the fact the pipeline is still rebuilding after the summer lull so is not yet at the levels to satisfy investor demand.

You can read all about this new Titania Re Ltd. (Series 2024-1) catastrophe bond from Ariel Re, as well as details on over 1,000 other cat bond transactions in the extensive Artemis Deal Directory.