Beazley looks to upsize Fuchsia 2 nat cat bond to $200m at below mid-point pricing

Beazley, the London headquartered specialty insurance and reinsurance underwriter, is now looking to upsize its second natural catastrophe bond, with the London Bridge 2 PCC Limited (Fuchsia 2 – 2024-1) deal now targeted to provide $200 million of protection to the company.

At the same time, we’ve learned that the price guidance for the Fuchsia 2 cat bond notes that are being issued has lowered and narrowed towards the bottom-end of the initially marketed range.

Beazley returned to the catastrophe bond market at the start of this month, seeking $150 million of reinsurance protection from what will be its second natural catastrophe bond issued through the Lloyd’s insurance-linked securities (ILS) vehicle London Bridge 2 PCC.

There are 8 entries in our extensive Deal Directory for catastrophe bonds sponsored by Beazley, including its first Fuchsia nat cat deal from late 2023.

Sources have told us that the size target has been raised, for the Fuchsia 2 cat bond to provide Beazley with $200 million of multi-year and fully-collateralized reinsurance protection.

As a result, if successful, the Fuchsia 2 Series 2024-1 notes issuance from London Bridge 2 PCC will provide Beazley with $200 million of reinsurance against losses from named storm and earthquake events that impact the United States, Canada and certain parts of the Caribbean, on an indemnity trigger and per-occurrence basis, running from January 2025 to the end of March 2028.

The now $200 million of Fuchsia 2 2024-1 cat bond notes, which have an initial expected loss of 0.99%, were initally offered to investors with spread price guidance in a range from 5% to 5.75%.

We’re told that the price guidance range has narrowed and been lowered to between 5% and 5.25%, as below mid-point pricing is now the goal, with Beazley also able to capitalise on the strong investor demand being seen at this time for new cat bond issues.

You can read all about this London Bridge 2 PCC Limited (Fuchsia 2 – 2024-1) catastrophe bond transaction in our Deal Directory, where you can analyse details of almost every cat bond ever issued.